A To–Do List for Your Estate Plan

Make (and update) your will. A will is the cornerstone of your estate plan, giving form and substance to your concern for the future of your family and other beneficiaries. You may also need a revocable living trust that reduces future probate expenses, provides for management of your assets if you become disabled and distributes your estate to beneficiaries.

Arrange testamentary trusts that support family members, especially those with special needs. Such trusts can be established in your will or as part of a living trust.

Plan to minimize taxes on your estate. Taxes may include state and federal estate taxes and income taxes on certain assets, such as retirement accounts and U.S. savings bonds.

Establish a living will or health care power of attorney (proxy). These will provide doctors and family members with guidance in making health care decisions if you are incapacitated.

Plan for someone to do your banking, pay bills and manage investments if you become unable to handle these tasks personally. You can equip a trusted person with a durable general power of attorney to provide these services; the standby trustee of a revocable living trust can have similar authority.

Compile a personal record. Leave detailed information about your finances, location of wills, insurance policies and trust documents. This can avoid confusion and lost time for family members. Your record should include passwords and PINs for all your digital accounts and should be stored in a secure place for access by trusted family members or friends.

Coordinate all your assets. Some assets, such as life insurance, jointly owned property, retirement plan benefits and financial accounts, may pass by beneficiary designation, not through a will. Make sure these are coordinated with your will or living trust.

Continue support for favorite charities. Many thoughtful people take satisfaction in making estate gifts to the causes and organizations they supported during life. These gifts can also be arranged to provide lifetime payments for a loved one before passing to charity.

<back