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Essential Estate Management Checklist

Essential Estate Management Checklist

May 17, 2023

Planning for the future involves more than just accumulating wealth. It's essential to manage your estate effectively to ensure your loved ones are taken care of and your assets are distributed according to your wishes. This estate management checklist can guide you through the key steps to safeguard your legacy.

  1. Create a Will: Having a will is crucial for specifying how you want your property and assets to be distributed. It also allows you to name a guardian for your minor children, ensuring their well-being.

  2. Establish Healthcare Documents: Prepare healthcare documents that outline your preferences for medical decisions if you become unable to make them yourself. These documents may include a living will, a power of attorney agreement, and a durable power of attorney agreement for healthcare, empowering someone to make decisions on your behalf.

  3. Arrange Financial Documents: Certain financial documents can protect your financial wishes and empower a trusted person to act on your behalf if you're unable to do so. Consider joint ownership, durable power of attorney, and living trusts to ensure seamless management of your finances.

  4. File Beneficiary Forms: Designating beneficiaries for bank accounts and retirement plans makes these assets directly payable to your chosen beneficiaries upon your passing. Ensure you complete "Payable on Death" forms for accounts that require it.

  5. Assess Life Insurance Coverage: Regularly review your life insurance coverage to ensure it aligns with your financial obligations. Factors such as age, health, and the type and amount of insurance purchased can influence the cost and availability. Be mindful of surrender charges and tax implications associated with early policy termination.

  6. Manage Federal Estate Taxes: If your combined assets with your spouse exceed $25.84 million (2023 limit), it's advisable to explore strategies for managing federal estate taxes, which will be due at the second spouse's death.1

  7. Safeguard Your Business: Protect your business by creating a succession plan, especially if you have co-owners. A well-thought-out buyout agreement can ensure a smooth transition and preserve the value of your business.

  8. Prepare a Letter of Instruction: Compose a non-legal letter of instruction that outlines your specific wishes. This document can save your heirs time, effort, and expense as they navigate the estate administration process.

  9. Organize Critical Documents: Ensure your heirs can easily locate essential documents related to your estate. Compile and store the following items securely:

    • Will and trust documents
    • Life insurance policies
    • Deeds and certificates for real estate, stocks, bonds, and annuities
    • Information on financial accounts and safe deposit boxes
    • Details about retirement plans
    • Records of debts, including credit cards, mortgages, and loans
    • Will and trust documents

Securing your estate and planning for the future requires careful consideration and proactive action. By following this comprehensive estate management checklist, you can begin planning for the protection of your assets and ensure that your loved ones are cared for, and your wishes are respected. 

Note: Power of attorney laws may vary from state to state, and an estate strategy involving trusts can involve complex tax rules and regulations. Consult a knowledgeable estate management professional before implementing such strategies.

1., 2023

The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.