Idaho Law Blog
By Lane V. Erickson, Attorney
I’ve seen countless clients breathe a sigh of relief once they have completed their Estate Planning. It’s almost as if a physical weight has been lifted from their shoulders. I understand why my clients feel this way. For those who have never done it, Estate Planning can seem like an insurmountable mountain that has to be climbed. I enjoy my job of guiding my clients through this process in a way that is both pleasant and easy. To take the fear and mystery out of Estate Planning, here is a checklist of the 4 types of Estate Planning Documents that every person should have. Having this checklist should help you and your family start a conversation about getting both your and their Estate Planning done.
1. Estate Planning Documents
The first type of documents that every adult should have for their own Estate Planning include the following:
___ Will: Ensures that your assets are passed to the people you want. In the drafting process, you’ll name personal representative, who is the person or institution that oversees the distribution of your assets. If you have minor children, you need to name a guardian for them. You can also use a will to set up a trust for your minor children or for family members who have special needs.
___ Durable Power of Attorney: Allows you to name another person to act as your agent in a variety of financial circumstances, like handling your bank accounts, responding to a tax inquiry, selling property, or managing your retirement accounts.
___ Durable Power of Attorney for Health Care: Allows you to appoint someone to make health care decisions on your behalf if you lose the ability to do so including what doctors you see, what medicines you take, what medical procedures you receive and what assisted living homes you live in.
___ Living Will or “DNR”: Allows you to provide specific directives to your doctors and health care providers about whether you want to be resuscitated or kept alive artificially in the event you have a terminal condition and cannot communicate your wishes personally.
___ Trusts (if applicable): Depending on your family needs and tax situations, you may also need either a revocable (changeable) or irrevocable (not-changeable) trust. Often times a Trust can take the place of a Will in passing your property to your loved ones. Trusts can also serve other functions in protecting your property for your use while you are alive.
2. Account Lists
Completing the basic Estate Planning documents listed above is a great start but it doesn’t complete the Estate Planning process for you. You also need to create, and share, a list of your accounts that your family or heirs may need to access. These include:
___ Bank and brokerage accounts
___ 401(k) accounts
___ IRAs and Roth IRAs
___ All auto-pay accounts, with name and contact information for each payee
___ Social Security Benefits
___ Safe-deposit boxes
___ Pension documents
___ Annuity contracts
___ Savings bonds (with copies of the actual bonds)
___ Life insurance policies
___ Long Term Care insurance policies
These types of accounts and documents can often be accessed online. If so, then any related online usernames, passwords, and/or security questions that someone will need to access these items should be prepared in a handwritten list. This list should be put in a safe and secure location. Keep in mind that your list doesn’t do any good if your family doesn’t know where to find it.
3. Documents of Your Property and Obligations
After you complete your basic Estate Planning documents and you have compiled a complete list of your accounts, the third category of documents you need include those involving your property and obligations. This category of documents includes several types of paperwork that will be helpful for your family. These include:
___ Home, land and cemetery deeds
___ Mortgage or Loan documents
___ Vehicle titles
___ Partnership and corporate operating agreements
___ Marriage license and/or divorce papers, if applicable
___ Military discharge information
___ Birth Certificate
___ Social Security Card
4. Your Contact List
Finally, it is important that you prepare and keep an updated contact list. The contact list is just what is sounds like, a list of people and their contact information. The contact list should include the following people:
___ Everyone named in your Estate Planning documents
___ Your Family Members
___ Your Attorney
___ Your CPA
___ Your Financial Advisor
___ The persons you deal with at your banks or other financial institutions
Estate Planning may seem daunting, but there are really only 4 simple categories of documents that every person should have. Once these are completed, you can breathe a sigh of relief too.
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 personal estate planning needs.