Job Designations: For all the roles within an estate plan (executor, trustee, guardian, etc.), whom do you want to appoint to serve in those roles? Particularly for ultra-high-net-worth individuals, seeking the counsel of a qualified estate planning attorney is essential. Work closely with your estate planning attorney and financial advisors in developing your specific plan.Įstate Planning Checklist – Questions to AskĮstate Planning Attorney: Do you need an estate planning attorney? The answer is likely, “Yes.” An estate plan is a legal document that can be quite complex. So, with an understanding of the primary components of an estate plan, let’s explore the checklist of questions to ask in creating an estate plan. Most states have a preferred form for this purpose, but it may be called something else, such as “Designation of Healthcare Surrogate” or “Advanced Medical Directive.” The living will designates whether and the extent to which you want to have life-prolonging procedures administered if you are terminally ill or in an end-stage condition where death is imminent (or in a prolonged vegetative state with no chance of recovery). Power of Attorney for Healthcare and Living WillĪ power of attorney for a healthcare and living will appoints an agent to make decisions regarding your healthcare in the event you are unable to do so yourself. Again, most states have a preferred form for this purpose, but it may be called something else, such as a “Durable Power of Attorney.” The main purpose is to transfer assets not already in a trust into your trust. Trusts provide creditor protection for heirs and assurance that remaining assets remain in your bloodline.Ī power of attorney for financial affairs appoints an agent to have the authority to access property and handle other financial matters. The trustee then administers the trust according to its terms, which reflect your wishes. The assets can be distributed outright, but we recommend that the assets remain in separate trusts. The beneficiary of a marital trust is only the surviving spouse.Īt the death of the surviving spouse, a marital trust and family trust are often combined and then divided among heirs. The beneficiaries of a family trust are often the surviving spouse and children. A marital trust would receive the balance. Accordingly, provided you have not used any of your exemption by making gifts above the annual exclusion, a family trust may receive the first $12,920,000 of assets. The current lifetime exemption is $12,920,000 per person (scheduled to drop to half that amount in 2026). The family trust may be funded up to the amount that can pass federal estate tax free. At your death, a trust will direct how the assets will be held or distributed.įor a married couple, often times a trust will provide for a family trust and a marital trust.

During your lifetime, you will use the assets as if you still owned them directly.

Next, a will provides that any assets that are not already in a revocable trust will be transferred into a revocable trust at the time of your passing.Ī revocable trust should hold substantially all of your assets.

A Power of Attorney for Financial AffairsĪ will accomplishes two major things: most importantly, it names guardians for any minor children.

Rather, enjoy the peace of mind that comes with carefully and thoughtfully expressing your wishes through an estate plan.Īn estate plan typically includes four basic documents, which are highlighted below: Don’t be part of the majority that puts off creating an estate plan. Unfortunately, only slightly more than 30 percent of Americans have an up-to-date estate plan. Probate can be a lengthy, expensive, and potentially contentious process for heirs without a comprehensive estate plan in place. Primary among those court proceedings is probate, which is a legal process that involves the reviewing of assets left behind after someone passes away, which ultimately determines who will inherit those assets. Particularly for ultra-high-net-worth individuals, an estate plan is critical to avoid major headaches and potentially lengthy court proceedings for any heirs. Regardless of where you are in life, having an up-to-date estate plan is a smart move and can help to ensure that the people and causes you care about are protected. An estate planning checklist is essential for anyone looking to develop an estate plan.

The estate planning checklist