Planning Checklist For An Untimely Death
When a person dies suddenly, family members are often ill-equipped to handle the estate administration, especially during a time of mourning the loss of a loved one. You can make this process easier by in advance organizing your affairs and documents so they can be easily located and understood. A good place to start is:
1. Documents and Records-- Keep good records of your Estate Planning documents and your assets, including deeds for real estate, investment accounts, bank accounts and ownership documents for corporations, LLCs and partnerships. Be sure to put them in a place where they can be easily found.
2. Prepare a List of Important People-- Your heirs will need to know the names and addresses and phone numbers of your attorney, CPA, financial planner, brokers and any other people with knowledge of your documents or assets. Knowing these people will make it easier for your family to administer your Estate.
3. Fund Your Assets to Your Trust -- By transferring ownership of assets to your Trust you can exclude them from the time delays and cost of Probate. Funding will often facilitate more effective control of the assets.
4. Designate IRA or Retirement Plan Beneficiaries ---These Plan benefits are normally exempt from Probate under
5. Designate Life Insurance Policy Beneficiaries --Life insurance benefits are paid directly to the designated beneficiary. The reasons for which you purchased insurance may change depending on life events, and the choice of beneficiaries may change too. Periodically review your policies and your beneficiary designations to ensure payment to the appropriate parties. If no beneficiary is named, or the beneficiary has died, the Plan benefits are subject to Probate. This can also mean the benefits are subject to probate fees, and may be reachable by creditors when they would otherwise be protected.
6. Designation of Persons for Making Legal and Medical Decisions-- You should continually review and update the list of people you have designated to make legal and medical decisions in the event you become incapacitated. Over the years your ideas for who you may want to make these decisions may change and you need to revise your documents to protect yourself and your family.
7. End of Life Decisions-- Prepare a document or discuss with your family members your desires for end of life decisions. Doing so will take pressure and anxiety away from your loved ones and enable your final wishes to be fulfilled.
8. Distribution Personal Items-- Prepare a list of items of personal property you want to be distributed to specific friends or family. This will allow you to give items of sentimental and/or economic value to people you care for. Not doing so may cause personal items to go to those who may not appreciate or deserve them.
9. Service Providers--make a list (with phone numbers) of the individuals or companies you use to handle repairs and maintenance, such as landscaper, plumber, etc. Not knowing who to call causes additional stress to your family and an already stressful time.
The loss of a loved one is never easy, but the legal and economic process required afterward can be made easier with just a little planning.
