Start your estate planning now to avoid stress later.
April 7th, 2024 by admin
More than half of adults do not have estate planning documents in place. After being asked to conduct over 250 presentations to companies large and small, colleges, bodies of faith and everything in between, one of the main reasons is that individuals think they need to bring more information to the initial session to get the process started.
In a recent column we addressed the basic steps to complete your estate planning. Here are other practical planning steps that are less involved than you think.
Documents you DO NOT need to bring to the initial session:- Deed to your real estate. It’s a public record. Your attorney can easily look it up at no cost to you.
- Insurance policies, such as life insurance, health insurance, long-term care insurance.
- Employee benefits summary.
- Bank and investment account documents.
- Your mortgage debt. However, you will need to have a general idea of how much you owe.
- Titles to motor vehicles.
- You will need to have a general idea of the total value of your assets, including your real estate and investments.
- Birth and marriage certificates (unless you were born or married into another country).
- Divorce judgment. That’s a matter of public record.
- Pre-marital and separation agreements. The lawyer who was engaged in the preparation of these documents can send you a signed copy almost always as a courtesy. (You did use a lawyer to assist in this process, hopefully.)
- Past tax returns. These are rarely needed. If you do need them, your accountant or CPA can send a copy of the most recent returns. The IRS could provide these to you easily. Go to this link: irs.gov/individuals/get-transcript and set up your account.
- Loan documents.
Here are some other helpful tips. Various law firms will provide you with a list of information you should have for your family members or trust advisors after your legal documents are executed. The information is all practical and easy to compile:
- Email passwords to various accounts. (But keep this information in a secure location, of course.)
- Funeral arrangements. When you decide, keep a copy of the key documents in a convenient place. More families now purchase pre-paid funeral plans whether you are cremated or buried. Ask the provider if the policy can be honored in another location should you move to be closer to family members or a facility.
- List the key people regarding your insurance coverages, financial and investment accounts, your accountant, your attorney and other important individuals. Write down their telephone numbers and email addresses, too.
The single most important action individuals need to take is to set up an appointment with your attorney. If you have a general idea of these individuals or organizations to which you want to leave your assets, and the general value of them, you are well on your way to completing the necessary information your attorney will need to start the preparation of your estate planning documents, generally in a matter of weeks.
One final tip: Ask your attorney to provide an initial courtesy conference.
Note of appreciation: Many thanks to all of you who called with your good questions during the statewide Ask-A-Lawyer annual event on March 1, now in its 17th year. Thousands of residents received free answers and great direction from hundreds of North Carolina lawyers and nearly 100 paralegals and law student volunteers from across the state.
Mike Wells is a partner with Wells Law in Winston-Salem. Contact him at mike@wellslaw.us and (336) 283-8700.
Posted in: WS Journal Articles