Basics of what an estate plan should include

It is important to have a basic estate plan in place. This plan should include:
  • A will and a living will or medical power of attorney
  • An assignment of power of attorney
  • In some cases a trust (check with your attorney)
  • A form where you can list all your assets and where they are located  (Click here for form)
  • A discussion with your attorney involving whom do you want to inherit various assets.
  • Whom do you want handling your affairs if you are unable to act yourself?
  • Whom do you want making medical decisions if you are unable to act yourself?
  • How do you want your assets distributed?
  • Do you want to name a guardian for your children?

Find an Attorney

If you are interested in locating an elder law attorney near where you live go to The National Academy of Elder Law Attorneys, Inc www.naela.org and click on "locate an elder law attorney" near where you live.  To reach a list of attorneys specializing in estate planning, go to American College of Trust and Estate Counsel.   ​

Find a Financial Adviser

Good advice from an expert including tips to help you find a pro who’s competent, honest and willing to work for a reasonable fee. ​

Assignment of Power of Attorney

The American Bar Association website offers the following advice:   Your attorney should be able to give you guidelines to follow however it is usually best to get your children and heirs to approve these plans ahead of time. However it is important to ‘spell out’ what you want ahead of time. This approach generally avoids at least some of problems (and suits) that could result. Remember the power of attorney covers your finances but you also need a document that covers your health care decisions if you are unable to act for yourself. A medical power of attorney can help, but each state has different laws and regulations governing what can and can’t be done.

Ethical Wills/Legacy Letters

According to Wikipedia an ethical will is a document designed to pass ethical values from one generation to the next. It is an aid to estate planning.

Traditional wills involve what you want your loved ones to have. Ethical wills involve what you want your loved ones to know.

Letters to Trustees

Writing a separate letter to trustees can help communicate your thoughts and can be highly valuable to trustees in understanding your intent.  The letter will provide more perspective and guidance and help guide the trustee use their professional discretion.   While a letter to trustees is not a binding legal document, it can be an extraordinarily meaningful piece of estate and legacy planning.

When appointing an executor BMO Private Bank offers the following tips:

  • Don’t surprise your executor: Ensure the executor you appoint is equipped and willing to handle the time commitment and complexities of the tasks at hand
  • Understand the commitment: ​Make sure the individual you have chosen as your executor knows his or her duties in the role – carrying out the wishes detailed in your will​
  • Location, location: If your executor lives outside of your state, make sure there are no legal or administrative complexities involved in being able to manage your estate
  • Stay up to date: Make sure you revisit your will every few years and update the executor, if necessary
  • Keep an open mind: Remember that a professional service can be of great assistance to the executor, especially if the estate is complex.  
  • Family Story: Write to communicate your values, wisdom, history, stories, and love from one generation to another. Tell readers who you are and what matters most to you. It’s a way for you to be remembered and to make a real difference. Consider writing this as a “family story” providing your thoughts, experiences what you want passed on to your immediate family, future generations and perhaps close friends.  You might include everything from: What have I been about? Who were the most influential people in my life? What is the greatest lesson I learned—and want to pass on? Whose forgiveness do I need? Who do I want to forgive? What are the values associated with our financial assets that I want my spouse and the generations that follow me to know? What family history do I want described?
  • The best gift for a grandchild: Whether you have $100 to give or $50,000, the best investment gift for a young grandchild is to open or contribute to a tax-advantaged 529 college savings plan to help pay for college. This is better than other types of gifting as the investment/gift grows tax free.​

End of Life Planning

It is important to do this panning and take action before this emotional time begins. Most have found it comforting to know that their financial, medical and personal choices have been addressed.

www.Everplans.com gives your family a simple means of managing your affairs and  explains how to complete documents such as health-care proxies and powers of attorney that appoint the right people (your choice) to make medical and financial decisions on your behalf should you become incapacitated. The site has links to standard versions of these documents for all 50 states plus the District of Columbia and provides information on living wills, do-not-resuscitate orders, etc.

For $75 a year, users receive five gigabytes of storage for documents on the site. You can upload copies of items your beneficiaries will need, including insurance policies, Social Security cards, bank account numbers, online usernames as well as contracts with funeral homes and cemeteries. Some users even include explanations of their wills.

The site requires users to name deputies to receive access to the information. It also recommends companies that provide wills and life insurance, although it receives no payment from those companies.

For answers to some of the most common questions you may have about managing your affairs as the end of life approaches click here to reach USBank’s planning for end of life information.