Estate Planning
DISCLAIMER
The information provided herein is for informational and educational purposes only and should not be construed as financial, investment, tax, or legal advice. The content is based on general principles and does not consider your individual financial situation, goals, or needs. Before making any financial decisions, it is recommended that you consult with an attorney, qualified financial advisor and accountant who can provide personalized advice tailored to your specific circumstances. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser. The GC-NPF does not recommend or endorse the contents of the third-party sites. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided "as is" and no representations are made that the content is error-free.
INTRODUCTION
Many people have a Will, Trust, Advanced Medical Care Directive and Powers of Attorney set up to help their family make difficult decisions down the road. These documents give direction on your final wishes and make estate settlement easier for your family. For example, knowing that: 1) your wishes will be followed if you become incapacitated; 2) family members will be taken care of financially; 3) bills will be paid; and 4) difficult decisions for family members can be made more easily, should give you and your family comfort.
It is a good idea to work with an attorney in your state to create, periodically review and update these documents. For example, some states now require that the documents noted above need to be notarized to be recognized by a local court. As family circumstances change (e.g., marriage, death, divorce, additional children or grandchildren, etc.) the above documents may need to change as well.
Other documents can be just as important to your heirs, Executor(s), Trustee and individuals who will have Power of Attorney to take necessary action. These are typically insurance and financial record documents. The Executor, Trustee and Power of Attorney need to know where these documents are and how to access them relatively quickly.
Below is a review of some documents that you may want to have in a three-ring binder, folder or maybe put in a safe or safe deposit box as well as a listing of Estate Planning Terms. There are various checklists like these on the internet like the National Institute of Health's website that you may want to research as well as some commercially available organizational kits that do the above. Various websites can also help you create Wills, Trusts, Powers of Attorney and Advance Medical Directives, but all should be reviewed by an experienced legal professional, accountant and financial planner practicing in your state.
The first item in your binder or folder should be a table of contents. Or, some people use a labeling system for their documents. It is suggested that you review and update your list of documents, statements and contact information at least annually, such as January 1. The binder should also contain the follow legal documents and personal information
PREPERATION OF THE FOUR ESSENTIAL LEGAL DOCUMENTS IN ESTATE PLANNING
• Last Will and Testament
When most people think about estate planning, the first thing they think about is their last will & testament. Commonly referred to as simply a “will”, this document allows you to express your final wishes in terms of distributing your assets, appointing a guardian for any minor children you leave behind, as well as the task of naming the executor to manage your final affairs and execute your will. While your will is indeed a fundamental cornerstone of any estate plan and can even constitute someone’s entire estate plan in very simple, straightforward situations, a comprehensive estate planning strategy will often consist of much more than just a will.
• Trust documents (note: should only be created with the assistance of an attorney and financial planner)
A trust is a powerful tool that offers greater flexibility and control over your assets while you remain alive and even beyond the end of your lifetime. A trust is a powerful instrument that exists at the intersection of law and finance, and it allows the seamless transfer of assets according to your exact criteria. A trust can hold several different types of assets and can be used to distribute assets over time. For example, assets could be distributed annually until depleted or only when certain criteria are met, such as a beneficiary graduating high school. By having trusts in place, your estate can avoid probate, distribute your assets exactly where you want them and on the fastest possible timeline. Much like a will has a named executor, you will also name a trustee to carry out the terms of your trust and distribute assets to your beneficiaries.
• Advanced Medical Care Directive
Not every part of an estate plan is all about money and assets, however. A special legal tool called an Advance Care Directive can also be part of your estate plan. This allows you to pre-make legally binding decisions about your own health care, including end-of- life healthcare and care when you are incapacitated. Rather than planning out specific decisions for every possible contingency, this tool also allows you to name a trusted party, such as a spouse or family doctor, to make healthcare decisions on your behalf in accordance with your overall wishes. This can also address things like organ donation and other end-of-life issues that you do not want your loved ones to be burdened with deciding. An advance healthcare directive is sometimes known as a healthcare proxy and is quite similar in function and purpose to a medical power of attorney.
• Powers of Attorney
A power of attorney is a powerful document that can be used for a variety of purposes. When we are looking at comprehensive estate planning, we often run into a version called Financial Power of Attorney. This is a document that allows you to grant a trusted individual, known as your agent or attorney-in-fact, the full authority to manage your financial affairs in the event that you become incapacitated and cannot handle your own business. A power of attorney can be highly customized so that you only hand over control of specific assets in certain circumstances. You can also use multiple powers of attorney. For example, you might assign a business partner to handle your commercial interests while assigning a family member authority over the household taxes and bills.
LIST IMPORTANT PERSONAL INFORMATION
• Final arrangement documents, such as funeral home arrangements, church services, cemetery contact information with plot number
• Name and contact information for Accountant, Broker, Attorney, etc.
• List of people, organizations (union, religious group, employer, alumni groups, civic memberships, professional associations, etc.) with phone numbers for your Executor and/or Trustee to contact with the news of your passing
• instructions on how to handle pets
• List of frequently used social media and websites with user-names and passwords
• Information on where to find titles and registrations for home, autos, motorcycle, boats, RVs, etc.
• Medical, Dental, and Vision (employer, Medicare, or state exchange) insurance information. Include a photo copy
(front and back) of insurance cards and update annually as necessary
LIST IMPORTANT PERSONAL DOCUMENTS
GATHER IMPORTANT DOCUMENTS
• Social Security Card, Passport, birth certificate, marriage certificate, final divorce degree, immigration documents, military discharge
document, copy of state ID card or driver’s license (front and back), etc.
• Insurance information – Life, Auto and Homeowners
• Health Savings Account/Flexible Spending Account information and last statement
• Credit Card and loan information
• Storage Unit service with note on passcodes, unit number, name of business and address
• Copy of mortgage statement or current lease if renting with contact information
• Recent statement of pension benefits from the National Pension Fund, 401(k) statements, Individual Retirement Account (IRA) statements, deferred compensation statements, etc.
• Copies of recent utility bills
• Tax returns – Federal and State
IMPORTANT THIRD PARTY LINKS AND PHONE NUMBERS
• Social Security Administration • www.ssa.gov • 1-800-772-1213
• Medicare • www.medicare.gov • 1-800-MEDICARE (1-800-633-4227)
• Department of Veteran's Affairs • www.va.gov • 1-800-698-2411
• National Institute of Health • www.nih.gov • 1-301-496-4000 •
• American Association of Retired People (AARP) • www.aarp.org • 1-888-687-2277
• Credit Reporting Agencies
- EQUIFAX • www.Equifax.com • 1-800-685-1111
- TRANS UNION • www.TransUnion.com • 1-800-888-4213
- EXPERIAN • www.Experain.com • 1-888-397-3742
• National Council on Aging • www.ncoa.org • 1-571-527-3900
- The 5 Best Online Will Makers of 2024 • www.ncoa.org/adviser/estate-planning/best-online-will-makers/
FUND AND UNION LINKS
• Graphic Communications National Pension Fund • www.gc-npf.org • 1-630-871-7733
• Printing Packaging and Productions Workers Union of North America • www.pppwu.org • 1-240-223-0310