Create Your Estate Planning Checklist

It is important to handle your estate planning needs at any age and stage of life as you may never know what life will bring. When one thinks of estate planning, it often becomes overwhelming at first, deciding what documents are needed to best fit your situation and where to start. As attorneys, it is our job to guide you. Having a checklist of what tasks to complete and what documents to have is a good start. Here are some basic estate planning documents and tasks that should be on your estate planning checklist.

• Last Will and Testament

Your Last Will and Testament puts you in control of how your estate will be distributed after you pass away. It allows you to appoint an individual as Personal Representative of your estate who will therefore be in charge of settling your estate according to your wishes expressed in your Last Will and Testament. In your Last Will and Testament, you are also allowed to designate guardianship over any minor child, bequeath specific gifts to whomever you may choose, and you can even decide if you would like to exclude anyone specific within your will.

• Handwritten Gift List

The handwritten gift list is a very important part of the will that allows you to specify what gifts and personal belongings go to which certain individuals. You may add items to this handwritten gift list at any time on your own and it will remain legally binding and a part of your will by signing and dating.

• Power of Attorney

Your choice of power of attorney is a crucial part of your estate planning checklist and should be carefully considered. There are several different types of power of attorneys to choose from. A “durable” power of attorney is a legal document that allows you to choose who to act in your place only when you become mentally incapacitated and unable to handle your financial and medical matters on your own. A “limited” power of attorney you may assign specific tasks and is only effective while you are alive and fully cognitive. A General Durable Power of Attorney also designates an individual to handle your financial matters, but unlike a durable power of attorney, a general durable power of attorney is in effect before and even after you become incapacitated.

• Advance Health Care Directive

An advance health care directive lets you specify what actions should be taken in the event you become incapacitated and are unable to make decisions for yourself related to your health care needs. With an advance health care directive, you appoint certain individuals to act as your health care agent in order to make those decisions. They truly aren’t making those decisions for you, but just carrying out your wishes as expressed in the advance health care directive. This lessens the burden on your loved ones.

• Trusts

A trust allows you to control your wealth and protect your legacy. Additionally, it can avoid having to probate your estate as you can place assets within your trust, keeping them private. There are several types of trusts that can benefit an individual and it all comes down to the individual’s personal situation as to which trust might be right for them. This is something to discuss with an attorney and they can take a better look at your finances and needs to point you in the right direction.

• Revocable Trust

A Revocable Trust is a trust that can be altered or even terminated upon the trustor. A revocable trust is a great tool to add to your estate planning checklist to avoid the hassles of probate, preparing your estate for ease of transition after you pass.

• Irrevocable Trust

Unlike a revocable trust, an irrevocable trust cannot be modified, amended, or terminated without a court order. Once you place assets in an irrevocable trust, it removes all ownership therefore making them not a taxable asset of your estate. This is also a strategy to avoid creditors.

• Testamentary Trust

A testamentary trust is not its own separate document unlike the last two trusts we have discussed; rather, it is a provision contained in your Last Will and Testament and provides specific distributions of part or all your estate. It is frequently used when the beneficiaries are children or disabled individuals.

• Deeds

There are several types of deeds which are valuable additions to any estate planning checklist: warranty deeds, quit claim deeds, life estate deeds, and transfer on death deeds. A deed simply transfers ownership from one person to another and a deed must be recorded with the appropriate county to avoid any legal challenges. With a life estate deed, the Grantees will have legal rights during their lifetime and upon passing, it will then pass the ownership of the property automatically upon the death of the grantor to the designated grantee. A life estate deed cannot be changed or terminated without the agreement of all parties involved. A transfer on death deed allows the designated grantee to receive the specified property upon your passing and the grantee will have no right to it before then. A transfer on death deed may be revoked at any time by the grantor.

• Where should I keep my Estate Planning Documents?

You should always keep your estate planning documents in a safe spot where you and your loved ones can easily access them. This could be a place such as a safety deposit box or a fireproof safe in your home. It is also beneficial to give your loved ones copies of these documents.

So, where do I begin?

An estate plan is always important for any individual or couple. It seems to be one of those tasks that gets pushed to the bottom of the To-Do list. Here at Boppre Law Firm, we try to make it as efficient as possible. We do this by providing you with an estate planning intake form and a list of important documents to bring with you at the initial meeting that will help us get started.

The estate planning intake form has personal information as well as financials for us to better understand your needs and point you in the right direction. Please give us a call at 701-852-5224 to discuss and help ease your mind—as well as your loved ones’—and start crossing things off your estate planning checklist!