While a morbid topic, estate planning is a key part of any financial plan as it ensures that your property and assets are given to the correct individuals once you have passed. It is a common misconception that estate planning is only for the ultra-wealthy. However, this is far from the truth. Whether small or large, it is important to have your final wishes stated.
To begin this process, it is best to reach out to a trusted estate planning attorney. If you do not know one, your advisor can connect you with one. A good estate plan will take into account information such as your income, expense, assets, liabilities, family members, taxes, etc. A few common estate planning tools include wills, trusts, gifting, and power of attorneys.
ESTATE PLANNING CHECK LIST
General Information
1. Has relevant personal information been gathered?
Personal details
Family details
Current advisory team
Goals and expectations
2. Has financial situation been assessed?
Assets
Liabilities
Life insurance policies
Other insurance coverage
Income
Expenses
3. Have current documents been reviewed?
Will
Trust documents
Power of attorneys
Medical directives
Insurance policies
Buy-sell agreements
Deeds, leases, mortgages, and land contracts
Guardian nominations
Separation/divorce agreements
4. Have funeral arrangements been made?
Trusts
1. Is the use of a living trust appropriate?
2. Is the use of a testamentary trust appropriate?
3. Is the use of an irrevocable life insurance trust appropriate?
4. Do existing trusts, if any, continue to meet overall objectives?
Estate Tax
1. Has estate plan been reviewed due to changing tax laws?
2. Have the impact of estate tax been evaluated?
3. Have options to minimize estate tax been explored?
Lifetime gifting
Full use of basic (applicable) exclusion amount and marital deduction
Qualified terminable interest property (QTIP) elections
Qualified domestic trust (QDT) for noncitizen spouse
Charitable giving
Grantor retained trusts
Family limited partnership (FLP)/limited liability company (LLC)
Lifetime Gifting
1. Have gifts been made?
2. Has a lifetime gifting strategy been implemented?
3. Are gift tax consequences understood?
4. Has consideration been given to types of property suitable for gifting?
5. Is valuation discount planning understood?
Charitable Intentions
1 Have charitable gifts or bequests been planned?
2. Is a charitable trust appropriate?
Charitable lead trust
Charitable remainder trust
Pooled income fund
Private foundation
Donor-advised fund
3. Is a charitable gift annuity appropriate?
4. Is the charitable gift of a remainder interest in a home or farm appropriate?
Life Insurance Issues
1. Have liquidity needs of estate at death been evaluated?
2. Is current life insurance coverage appropriate?
3. Have steps been taken to keep life insurance proceeds out of taxable estate?
Policy ownership
Irrevocable life insurance trust
4. Have beneficiary choices been evaluated in light of overall estate plan?
Business Interests
1. Have provisions been made to transfer business interest?
Buy-sell agreement and necessary funding
Sell business
Transfer business with lifetime gifts
Key person buyout
2. Is liquidation an option?
Raymond James and its advisors do not offer legal advice. You should discuss any legal matters with the appropriate professional. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., Member FINRA / SIPC. Securities are not insured by credit union insurance, the NCUA or any other government agency, are not deposits or obligations of the credit union, are not guaranteed by the credit union, and are subject to risks, including the possible loss of principal.