Ease the Estate Settlement Burden
Whenever a loved one passes away, the grief can be more than a person can bear. However, the grief coupled with the burden of settling their loved one’s estate can be overwhelming. Here are a few things you can do to make the estate settlement process easier for your heirs:
Make sure your will is updated. The will should name your executor and if you have children under 18, it should name a guardian. Also, if you have minor children, you may want to have a trust in place for your children and named trustees.
Check beneficiary designations. Most people choose beneficiaries when they open an account, start a new job, or first buy insurance. Decades later, life may have changed (divorce, births, deaths, etc.) and the old choices could be problematic. Make sure you check all your IRAs, 401(k) plans and insurance to make sure the beneficiaries reflect your current wishes.
Create a notebook with all the information your heirs will need. You should include a net worth statement, contact information of relevant parties such as your financial advisor, valuables list, last wishes, and a key documents reference list.
Develop a strategy for storing important passwords and access information. You should compile a list of important services and corresponding access information (logins, passwords, access keys, PINs, etc). Common things to consider putting on your list are computers, social media, cell phones, bank accounts, and online services (photo storage, google drive, etc.).
Deposit your original stock and bond certificates in a brokerage account. If stock and bond certificates are in safe deposit boxes or somewhere in the home, there is a chance that they will be overlooked during the estate settlement process. Also, the process to change each certificate into the heirs’ names is much more rigorous than changing the registration of a brokerage account. We would recommend that you deposit these certificates into your brokerage account when you can to ease the re-registration process.
Make sure there are enough liquid assets to settle the estate. Monthly bills will still need to be paid so there needs to be enough money available in money market or a checking account to fund two to three months of ordinary expenses.
Write an ethical will or family letter. Ethical wills can share values, family history, explain estate planning decisions, or express feelings toward family members. While this is not a legal document, it can share with loved ones your heartfelt expression of what truly matters most in your life.
Communicate with your family now. In order to make sure there are no surprises later, you should meet with everyone significantly involved with your estate. This would include executors, trustees, and primary heirs. One rule of thumb would be to meet once every five years to discuss your estate.
All of these items can make the estate settlement process much easier on your heirs. We are always available to help in the estate settlement process and to help you make decisions about your own estate. Contact us today to set up an appointment to analyze your estate plans.