Yes it’s true that no one wants to think about death. Yes, it’s also true that thinking about it come up with sugar completing your estate planning can be overwhelming. However, there are two realities that no one can escape: Death and Taxes. This blog is not about taxes. It is about death.
We all know that we are going to someday die. No one wants to think about that occurring or believe that it will happen to them before they are ready. The reality though is that death occurs all the time and it also occurs to people who are not ready. To make sure you are ready, here are five things that you should do right now to assure that you are prepared.
1. HAVE AT LEAST A BASIC ESTATE PLAN COMPLETED
The first and most important thing that you can do is actually create an estate plan. This would include a last will and testament, a durable power of attorney for finances, a living will and a durable power of attorney for Health Care. These are the basics of an estate plan.
2. REVIEW YOUR RETIREMENT ACCOUNTS
The second step is that you should consider those items that are not a part of your estate. These would include your retirement accounts. Retirement accounts are unique in that they are individually owned. That’s what and IRA means (Individual Retirement Account). As part of signing up for a creating a retirement account you filled out an application that also contained a form that was titled designation of beneficiaries. This document allows you to name who the administrator of your account should distribute the funds of your account to if you are to pass away. I am always surprised to find that many of my clients have not completed the designation of beneficiary form. If it has not been completed then I strongly encourage my clients to get it done. If it has been completed then I strongly encourage my clients to review the beneficiaries that they have name to make sure that these are still the individuals they want to receive this account.
3. REVIEW YOUR LIFE INSURANCE
The third step is similar to the Second Step, it is reviewing your life insurance. End your life insurance you specifically name who the beneficiary will be upon your death. Most often a person includes their spouse. However most people would agree that their age is not a for sure thing. Divorce is comment. If you name your spouse while you are married to them and then forget to change that designation after they are divorced, then that person is still named as the beneficiary of your life insurance. Most people would be shocked to know that their ex spouse would receive a large sum of money if they were to suddenly die.
4. TALK WITH THOSE AROUND YOU
The fourth step is to talk with those who are around you. This would include your family and your loved ones. It would be important to share with them your thoughts and ideas about your estate planning, whether you have your estate planning completed, and if so where your estate planning documents are located so that they can easily find them upon your passing. Additionally, if you have named somebody to be a personal representative for you or to hold a power of attorney for you, it is a good idea to talk with him about this. You might be surprised to learn that these individuals do not want to have that responsibility. No person can be forced to carry out these responsibilities. If a person chooses to not have that responsibility, does your estate planning provide for a successor who can step up and take over those responsibilities?
As has been stated above, simply the passage of time could make it so that an individual who at one time was willing to serve in the capacity you name they now no longer be. So again it is not a bad idea to talk with these individuals and make sure that they are fine with the appointments that you have made in your estate planning.
5. ORGANIZE AND UPDATE A LIST OF YOUR ASSETS AND DEBTS
The final step is that you should organize an update a list of the assets that you own and the debts that you owe. It is extremely helpful for your family and loved ones to know whether you have debts that are owing to another person. It’s also extremely helpful to know what assets you own, and what value you believe these assets have. As time goes on, the assets that you own may change. As with all other aspects of your estate planning, reviewing your list of assets and debts every now and then is a great way for you to be sure that you are current and updated in the information you are leaving for your loved ones.
If you have questions about how to complete your estate planning, we can help. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your Idaho Estate Planning problems.
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