Tips for Estate Planning
It’s not exactly fun to contemplate, but there are many things to keep in mind when you consider having a Will prepared to express your intentions for your property at your death. If you own a home, it is necessary to review the deed to confirm how it is titled. It may be in your name alone, or it may be owned jointly with a partner or family member. If your home is titled only in your name, you must make a direction in your Will for how this asset will be distributed. If someone else lives with you but their name is not on the Deed, you must consider whether they will need to remain in the home at your death.
You need to consider your four-legged friends. Know that a pet, whether a cat or dog, or more exotic friend, feathered or scaled, is considered your property so cannot be a direct beneficiary under your Will. You may need to plan for the care of your pet. This includes choosing the person or organization with whom it will live and deciding if funds will be provided to be used to care for its needs. These decisions may be stated in your Will, and in appropriate cases, may justify putting together a Pet Trust. Not stated in your Will but very important is to provide the animal’s medical history as well as the name of the veterinarian that you use. Along with this, include instructions as to diet, routine and behavior.
If you have certain property in your home that you would like to be given to a particular person at your death, this direction should be stated clearly. You can include a reference to a memorandum in your Will. This information must be kept with your Will so that it can be found by your Executor (the person in charge of assuring that your Will is filed with the County and followed). This Memorandum should be updated as your personal property changes; for instance, if you decide to give something away during your lifetime.
If you have decided that a child of yours will not be included in your Will, either because you have provided for them during your lifetime, or for any other reason, this should be stated outright in your Will. Leaving a nominal gift to a beneficiary, perhaps to make a point that you are not treating them equally, can cause hardship for your Executor to locate this person and complete the transactions necessary to make this nominal distribution.
The Will may say I leave “all of my property to my children.” It does not legally need to be more specific. However, the executor has the job of identifying every asset. This includes your home, personal property, and accounts. Even if your Executor lives with you, they may not have knowledge of each specific item of your property. It is very helpful to create a list of each asset. This list should include the location or the Deed to your property or properties, and the name of the mortgage company or loan company related to each property. You will also include on this list the names of each of your accounts, the location of the bank or institution related to this asset, and the account numbers. Likewise, the list should indicate, for personal property, where each item is located and if there is any paperwork related to it, such as insurance, registration, or the owner’s manual.
When you are planning a meeting with your attorney to discuss a Will or update your Will, it is helpful to bring with you the following: (1) the names, addresses and dates of birth of each of the persons who are to be beneficiaries in your Will; (2) a copy of the Deeds to any real estate you own; (3) a list of the assets that you own, including insurance policies, retirement accounts, investments, stocks, bonds, and brokerage accounts. If you have investments, review your accounts, or talk to your financial advisor to confirm if you have named beneficiaries for these assets.
It is important to answer the question “what if?” You identify beneficiaries in your Will, however, what if they should predecease you? Consider who would receive their share if they are not alive at the time of your death.
Some people may choose to use estate planning forms or online estate planning tools. It may seem easier and tempting to use these products, however, a discussion with an experienced estate planning attorney will help you see and understand the many issues to consider when preparing a Will that clearly represents your wishes. You engage in the estate planning process for peace of mind. The best way to ensure that your wishes are actually carried out after your death, and to give yourself the best peace of mind, is to work with an attorney, so you know that the job is done right.