Business interests: Your client will need an attorney to help them determine which business assets they hold (and can place in a trust) and which assets belong to the business structure.Promissory notes: If your client has loaned money to a family member with a written promise of repayment, it’s crucial that they include the amount in their estate.Insurance: Term, whole life, split-dollar, group life, and annuity.Investments: General investment account, mutual funds, ETF, stocks (equities), bonds, money market, and Treasury bills.Retirement accounts: General pension, 401(k), 403(b), IRA, Simple IRA, SEP IRA, Roth IRA, HSA, and ESA. Vehicles: Automobiles, boats, motorcycles, and aircraft.But this blind spot could lead to identity theft and unnecessary taxation. Digital assets: Many estates overlook digital assets such as airline miles, credit card reward points, cryptocurrencies, and log-in credentials.Bank accounts: Checking, savings, certificate of deposit, and money market accounts.Real property: Any land, building, or residence that your client owns or has a mortgage on.Let’s take a look at what your client should include in their balance sheet: Help your client by determining which assets are easier to estimate based on current market value, and which assets, like private business interests, may need an independent professional appraisal. Things intended for a payout later, like retirement accounts, and life insurance.Things that your clients own a title to directly, like their house, vehicles, bank, and investment accounts.The estate planning personal balance sheetīefore diving into the official estate planning documents, make sure your client has a complete list of their assets and estimates of each asset’s value.ĭina Nam says to think of assets in two different ways: It will also dispel common assumptions and misperceptions financial advisors have when it comes to estate documents. Our checklist will help you understand why each estate planning element is essential and what to consider as you and your clients plan for 2023. We’ll give you clear insights into a difficult topic: what your clients need to have in place in the event of their death or incapacitation. That’s why we’ve created this easy-to-follow estate planning checklist. As their financial advisor, you’re in the best position to keep your clients on task so they can reach their goals and ensure their families are taken care of.īut between a myriad of documents, individual state requirements, and shifting federal estate tax laws, it’s no wonder the estate planning process can be overwhelming for financial advisors and their clients. If something should happen to your clients, regardless of their age or income, it’s crucial that they have a plan for their financial assets. Letter of Instruction to Executor/Personal RepresentativeĪ letter of instruction to the executor/personal representative is a letter that provides additional information and instructions to the executor or personal representative appointed to administer your estate after your death.Print Share Estate Planning Checklist: Everything your clients’ documents should cover, according to our legal expert Trust documents include a trust agreement, as well as any amendments or revisions to the trust agreement.Ī deed to transfer property is a legal document that transfers ownership of property from one person to another.įuneral and burial instructions can specify how you would like your funeral and burial to be handled, as well as any special requests you may have.ġ0. This can help avoid probate proceedings.Ī trust is a legal arrangement in which property is held by one person (the trustee) for the benefit of another person or persons (the beneficiaries). Designation of Guardian for Minor ChildrenĪ designation of guardian for minor children is a document that names a guardian who will care for your minor children in the event of your death.Ī pour-over will is a document that directs the distribution of your property into a trust after your death. Durable Power of Attorney for Financial MattersĪ durable power of attorney for financial matters is a document that authorizes someone else to make financial decisions on your behalf if you are unable to do so yourself.Ī health care proxy is a document that designates another person to make decisions about your medical care if you become incapacitated.Ī living will declaration is a document that sets out your wishes for medical treatment in the event that you are unable to communicate them yourself.ĥ. It can also be used to name a guardian for your minor children.Ģ. A last will and testament is a document that sets out your wishes for the distribution of your property after your death.
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