Proper Estate Planning

By Larry Lane for Investorzoo.com

If you have a will or living trust detailing your beneficiaries, you’re not quite done with your estate planning. Take an evening and make a complete inventory of your assets. Below is a checklist of items you may have overlooked.

You should review your beneficiary election every couple of years. Naming beneficiaries will expedite distributions, reduce taxes and eliminate family in fighting.

Contingent Beneficiaries should also be named should your primary beneficiary prematurely die. When the benefactor dies, the assets are immediately owned by the beneficiary regardless of what your will indicates.

Here are some questions and issues that should be addresses:

1) Do your kids or beneficiary know where the will and durable power of attorney is located?
2) Who has the right to make end of life decisions should both parents become incapacitated?
3) Have they been explicitly clear in their wishes?
4) Have you filled out your beneficiary designations on your retirement accounts? This would include IRA, 401, life insurance and stock brokerage accounts. Your heirs should know the contact, phone numbers as well as your account number
5) Car loan information
6) Mortgage information: If you owned a vacation home, is the mortgage held by the same company that holds your primary residence?
7) Do you have collectibles such as gold coins or art? If so, where are they stored? Is there a safety deposit box? If so, where is the key located?

Your heirs should have also the phone number, email address, account numbers and contact information to the following:
1) Financial Planner
2) Life insurance agent
3) Bank or financial institution where checking and savings is held
4) Accountant
5) Family Attorney

To navigate through the complicated world of probate, tax and inheritance issues, you need the advice of a good financial planner, estate attorney or tax account who special in asset protection. If you do not structure your assets correctly, you could cost your heirs thousands or possibly millions of dollars.

Always consult a licensed professional before making any finaincial decision. 

Larry Lane is head blogger for Investorzoo.com