Over half of all Americans do not have even a basic estate plan in place, despite admitting that they understand the importance of estate planning. One of the most common reasons people give for procrastinating when it comes to estate planning is that they are not sure where to start. People are often a bit intimidated by the idea of creating an estate plan – at least until they actually sit down and get started. At the German Law, we would like to encourage you to get started on your estate plan. To help you, we have created the following estate planning checklist for your reference.
- Defining your needs and goals – a well thought out estate plan should do more than simply determine what happens to your estate assets when you are gone. Before you get started on your plan, you need to spend some time defining your needs and goals. To help you do that, consider asking yourself questions such as:
- Who (if anyone) do I need to provide for in the event of my death or incapacity?
- Are there any known threats to my assets?
- Do I need to be concerned about estate taxes?
- Is probate avoidance important?
- What are my wishes with regard to end of life medical treatment and my own burial and funeral?
- Know your assets and liabilities.
- Create a list of estate assets, including as much detail as possible about each asset. Account numbers, current value, and any other pertinent information should be included.
- Obtain professional appraisals for big ticket items such as your home, jewelry, art, and collectibles.
- Create a list of debts and liabilities, including the same information as you did for your assets.
- Decide on beneficiaries. You probably already know who most of your beneficiaries are; however, it is surprisingly easy to overlook someone. Common beneficiaries include:
- Spouse and children
- Other family members
- Charities
- Close friends
- Family pet
- Choose fiduciary roles – you must appoint an Executor for your Last Will and Testament and a Trustee if you create a trust.
- Make sure you have a firm understanding of the duties and responsibilities of each role.
- Do not simply appoint a spouse, family member, or close friend because you feel obligated or because it is the easy choice. Often, these individuals are not truly equipped to fulfill the role successfully.
- Contemplate end of life issues – it is not a particularly pleasant topic, but an important one. Questions to consider include:
- Do you want to authorize or refuse life-sustaining medical treatment?
- Who do you want to make medical decisions for you if you cannot make them?
- Do you have strong beliefs and/or wishes regarding your funeral and burial?
- Do you want to arrange for funding your funeral ahead of time?
- Don’t forget incapacity – your estate plan should not focus solely on your eventual death. Instead, it should also contemplate the possibility of your incapacity.
- Who do you want to control your assets?
- Who do you want to make personal and medical decisions for you?
- Consulting with an experienced estate planning attorney – do not try to create your estate plan using DIY documents you found on the internet. In the long run, the errors and omissions commonly associated with DIY documents will likely cost your loved ones considerably more time and money than you saved in legal fees.
- Distribute and protect plan details and documents.
- Decide how much of your plan details to share with beneficiaries.
- Give anyone with a fiduciary role a copy of you plan.
- Put a copy of all documents in a fire proof safe and/or a bank safe deposit box.
Contact Us
If you have additional question or concerns regarding estate planning, or you wish to get started with your estate plan, contact the experienced North Dakota estate planning attorneys at German Law by calling 701-738-0060 to schedule an appointment.
