8-Part Estate Planning Checklist

1 8-Part Estate Planning Checklist The guide you need to help you ensure that your wishes are honored, and your assets are managed as you desire and later distributed to your heirs as you wish. This Checklist can help you quickly evaluate your current Estate plan. First, we'll explain each topic before you complete the Checklist for each topic. This Checklist covers: . Beneficiary Asset Last Will advance Designations Titling and Testament Medical directive . Durable General Durable Power of Trusts Digital Power of Attorney Attorney for health care Assets 833-PLAN-EFE (833-752-6333) | Beneficiary Designations When you buy certain assets, you are asked to state (or designate) who is to get the asset upon your passing (called your beneficiary).

2 When the financial institution managing the asset is informed of your passing, it distributes the asset to the beneficiary immediately. You can name as many beneficiaries as you wish, and you can choose how much of each asset each beneficiary is to receive. You may also designate charities as your beneficiaries as well as people. Beneficiary designations supersede all other Estate Planning documents. Assets with designated beneficiaries do not pass through probate court (and courts are generally reluctant to overrule the designations). Beneficiary designations should be considered final. Thus, failure to designate any beneficiaries causes the asset to become part of your probate Estate meaning it will pass to heirs in accordance with your will but only after going through the lengthy, expensive and public probate process (see section on wills).

3 For each type of asset that allows you to name beneficiaries, you can name a primary and a secondary beneficiary. The primary beneficiary inherits the asset upon your death. If all the primary beneficiaries predecease you, the asset will pass to all the surviving secondary beneficiaries. If all have died, the asset will become part of your Estate and pass to your other heirs via your will. It is common, but by no means required, for people to name their spouse as their primary beneficiary and their children as their secondary beneficiaries. Indeed, you may designate more than one primary and secondary beneficiary. List all your beneficiaries by name, noting the portion each is to inherit. If your intent is for each child to receive an equal amount, for example, you can say, John per capita (Latin for for each person ), Ringo per capita and George per capita.

4 Do not merely say, all my children, because many financial institutions reject such vague language. They don't know whether you meant to include or exclude children born out of wedlock (whose existence you might not even be aware of), foster or adopted children, or step-children, and they don't want to get involved in such family squabbles or lawsuits. And what if George predeceases you? If you want his share to go to his son, Paul (your grandchild), you might state George per stirpes ( of issue ). Otherwise, you'd be disinheriting your grandson to the consternation of Paul and the joy of his cousins. And if any of your heirs are minors, watch out: Children younger than age 18. cannot own assets; any inheritance they receive must be managed by a custodian or guardian.

5 Have you married more than once? Say you designated your spouse but later divorced and remarried. If you didn't update your beneficiary designation form, your former spouse not your widow! will inherit the asset when you die. For all these reasons, it's vital that you talk with your Estate attorney to confirm that each beneficiary designation form is up to date, accurate and complete. 833-PLAN-EFE (833-752-6333) | 2. This material is for informational purposes only. Please consult your legal or tax professional for advice based on your specific individual situation. Beneficiary Designations Checklist Review your records as necessary; you should have a copy of the new-account documents (including beneficiary designations) that you signed when you bought each asset or opened each account.

6 If you cannot locate your documents, contact us. Check the box Check the box Check the box Check the box if you signed a if you can recall if you can recall if you need beneficiary who you named who you named to revise your Check the box and list each designation as your primary as your secondary beneficiary separately if you have a: form beneficiary beneficiary designations Deductible IRA.. Nondeductible IRA.. Roth IRA.. SEP-IRA.. 833-PLAN-EFE (833-752-6333) | 3. This material is for informational purposes only. Please consult your legal or tax professional for advice based on your specific individual situation. Check the box Check the box Check the box Check the box if you signed a if you can recall if you can recall if you need beneficiary who you named who you named to revise your Check the box and list each designation as your primary as your secondary beneficiary separately if you have a: form beneficiary beneficiary designations SIMPLE IRA.

7 401(k).. TSP.. 403(b).. 457 account .. 833-PLAN-EFE (833-752-6333) | 4. This material is for informational purposes only. Please consult your legal or tax professional for advice based on your specific individual situation. Check the box Check the box Check the box Check the box if you signed a if you can recall if you can recall if you need beneficiary who you named who you named to revise your Check the box and list each designation as your primary as your secondary beneficiary separately if you have a: form beneficiary beneficiary designations Fixed annuity .. Equity indexed annuity .. Variable annuity .. Life insurance policy .. 833-PLAN-EFE (833-752-6333) | 5. This material is for informational purposes only. Please consult your legal or tax professional for advice based on your specific individual situation.

8 If you have any of the above assets, check the following boxes if, in the time since you signed each beneficiary designation: No one in your family has been born, died or changed their marital status. You have not had a change of heart regarding your heirs (both family members and charities) meaning the beneficiaries you designated remain the same choices, in the same way, as you'd choose today. You have confirmed that each financial institution handling the above assets has on file, and in good order, your beneficiary designation forms. There has not been any major change in tax or Estate law. If you cannot check every box, you should review your Estate plan with your financial advisor and Estate attorney. 833-PLAN-EFE (833-752-6333) | 6.

9 This material is for informational purposes only. Please consult your legal or tax professional for advice based on your specific individual situation. Asset Titling You get to select the asset's legal owner whenever you buy or obtain an asset such as a house, car or financial account (held at a bank, brokerage firm, investment management or financial advisory firm, mutual fund or annuity company, or securities custodian). Will you own the property in your name, jointly with another person (such as a spouse or child), or will the asset be owned by a trust, LLC, or S or C corporation? Your decision has tax implications (important, but beyond the scope of this discussion) as well as crucial Estate Planning implications. There are significant considerations, such as liability exposure and other factors, but for our purposes here, your selection determines who will inherit a given asset following your death and how that asset will pass to the selected heirs.

10 Here is a brief description of how assets pass to heirs: Held Solely in Your Name The asset passes to your heirs via your will (see section below) and is subject to the probate process. Transfer on Death You are sole owner of the asset, but upon death, the asset passes (for brokerage accounts) immediately to the named individuals registered on the Payable on Death Payable on Death account outside of probate. For example, John Doe POD James Doe is an (for bank accounts) account owned by John that passes to James upon John's passing. Joint Tenancy With Rights All owners have an equal share of the asset; when you die, your share passes of Survivorship to the surviving owners. This continues until there is only one survivor, at (JTWROS) which point it becomes an asset held solely in that person's name (see above).