You’ve created estate plans… now what?
Congratulations! You have taken an important step to take care of your financial affairs at death by creating your estate planning documents. Pat yourself on the back and feel the sense of accomplishment for a job well done.
(applause)
Now, that you have the documents written down, that’s it right? Well, not really. There are some additional steps you should complete to really make the estate plans you worked so hard to put in place come to life. This article reviews the additional items you should consider.
How do you know which of these apply to you?
If you worked with an attorney, they can (and should) provide you with detailed instructions on how to implement your plans and which of the below actions you need to take. Before taking action, it is important to understand the potential tax, gifting, and access concerns. Consulting with a qualified attorney, accountant, or financial advisor can help you navigate these issues.
7 Things to do After Creating Estate Plans
Store Your Estate Plans Appropriately
Choose a secure and accessible location for your will, trust documents, powers of attorney, and healthcare directives. The goal here is that the documents are free from destruction and theft but at the same time accessible by those who will need to access them. With each option below, it is important to communicate with your executor where your estate plans are and how to access them. Options include:
- A fireproof safe: Communicate the safe location, the combination or key location to the safe.
- A safety deposit box: Communicate the box information and discuss with the bank who can access after your death.
- A trusted attorney’s office: Communicate who the executor should contact
Communicate with the Key Actors in Your Plans
For your plans to be carried out, you need to communicate what your plans are to those who will be enacting them. The most important key actor in your plan is your executor as they will be responsible for most of the work in settling the deceased estate. Secondarily, if you have a Trust, discussing the plans with the trustee; and if you’ve named a guardian, discussing that election with them.
Check out this article for other key actors who you may want to communicate with: Navigating the Complex Web of Estate Settlement: Understanding the Key Actors and What They Do – Gilbert Wealth
Communicate with Custodian's
Custodian’s (the businesses that hold your investments) may need to know about your power of attorney in advance. Most major custodians have their own paperwork to complete to designate someone as a power of attorney or signer on the account.
Update Beneficiary Designations
Updating your estate plans is a great cue to revisit and confirm your beneficiary designations. While you might think you remember what was there, it is always a good practice to locate that designation and confirm that it does in fact match your intentions and the designations are consistent with your estate plans.
Update Account and Other Asset Titling
If needed, update appropriate account titling to reflect any changes you made. This may be adding a Transfer on Death or converting an account to a joint account.
If You've Created A Trust...
Fund your Trust
A Trust only controls what assets are placed in the Trust. If no assets are in the Trust at death, the Trust can still be funded from the estate if that is what is designated in the Will, but that only happens after probate.
Funding the trust is the proactive retitling of accounts and assets into the name of the trust. For example, changing the ownership of a joint investment account or the name on a real estate deed to the name of the trust.
Talk to the attorney who drafted the Trust on which documents should be placed into it.
And Finally...
Periodically Review Your Plans
A good estate plan is one that reflects your current wishes and goals while also complying with current laws. Any of those could change so periodically reviewing your estate plans is key to making sure that your plans remain relavent.
Check out this article for more information: When to Update Your Estate Plans – Gilbert Wealth