I Have my Estate Planning Documents in Place…. Now What?

Oct 22

Ten Additional Actions to Take

Welcome to “National Estate Planning Awareness Week”, a time to raise awareness about the importance of estate planning.

Having an estate plan drafted is a very important step. We congratulate you if you have executed any or all of the following documents: Will, Trust, Power(s) of Attorney and/or Health Care Directives. However, the work doesn’t stop there. There are additional steps that can be taken to make matters less stressful for your loved ones once a life-threatening event occurs. Here are ten (10) additional actions to consider taking after your estate planning documents are drafted.

Transfer/Retitle assets – A common goal of estate planning is to minimize or avoid going through probate. For many individuals, an estate plan involves setting up a revocable trust during their lifetime and retitling assets into the trust. However, after the trust is set up, you must follow through and take action to retitle your assets into the name of the trust. Failure to do so could mean that your assets are still considered part of your probate estate upon your passing and must go through the probate process before they can be distributed to your loved ones. To avoid this result, you must set aside time to visit with your county register of deeds for real estate, your bank or credit union for deposit accounts, and your brokerage or financial institution for investment accounts—to complete the necessary ownership changes to retitle assets into the name of your trust. In addition, if your estate plan involves the lifetime gifting of assets, please follow through with completing those transfers as well.
Review beneficiary designations – Review your beneficiary designations to confirm they are in line with your current intent, and in line with your drafted estate plan. This includes reviewing the designations associated with your life insurance, annuities, retirement accounts, bank accounts and brokerage accounts. It’s your responsibility to make any changes. However, your estate planning advisors can assist with conducting any reviews.
Set up RMDs and annual exclusion gifts for recurring payments if feasible - If you are required to take a Required Minimum Distribution (RMD) from your retirement account or if you have an annual gifting plan in place, consider setting these up for recurring payments with your financial institution. It is preferable to set these payments for early in the calendar year to increase the chances that the benefits will be fully recognized. For example, let’s assume that John Doe -- a 75-year-old individual who takes an annual RMD from his IRA, and makes annual exclusion gifts to his grandchildren -- dies during the month of May, with his adult grandchildren listed as his IRA beneficiaries. If John had not fully taken his RMD prior to passing away in May, his beneficiaries would be required to take any unpaid RMD for that year, after going through the time-consuming process of locating all beneficiaries and determining the unpaid RMD amount. Furthermore, if John had not made his annual exclusion gifts during the calendar year prior to his passing in May, then this benefit is lost for that calendar year.
Create a wallet card – Create a wallet card that includes your emergency contact information, including any current or successor medical and financial agents on your behalf. This will help tremendously should you experience an emergency while you’re away from home.
Create a list of important contacts to be notified if/when something happens to you – Make a list of close or important contacts who need to be notified if something happens to you, including your estate beneficiaries. Most of us have acquaintances from different facets of life, and your loved ones may not be familiar with everyone that you’re close with. Having a list of friends, family members, close organizations, etc., can help ease your loved ones’ minds that all necessary parties have been notified.
Store important documents/items for safekeeping – Store your original estate planning documents in a safe and secure location, and provide copies to key individuals such as your nominated personal representative. If your local probate court offers a will safekeeping program, consider taking advantage of it. Important items—such as deeds, birth certificates, and extra keys—should also be kept in a secure place, such as a home safe, locked cabinet, or bank safe deposit box. However, it is crucial that someone you trust knows how to access these items, whether through a key, combination, or clear instructions on their location. Be especially mindful if you decide to place your original Will in a safe deposit box, because the original document is required to open your probate estate after death. If it is locked in a box to which no one has access, it may create an additional layer of court involvement to gain entry and retrieve the Will.
Create list of financial accounts and assets – Make a complete list of your financial accounts, including account numbers and the contact information for your relationship managers. Indicate whether you receive account statements in the mail or online only. Include passwords as well. Also, create a list of your non-liquid interests such as business interests, timeshares, and rental property, along with their corresponding locations and points of contact. Store in a secure location that a trusted person has access to.
Create List of Debts and Expenses – Make a complete list of your debts and expenses, including account numbers and the contact information. Indicate whether you receive account statements in the mail or online only. Note whether the item is set-up for auto debit or whether you manually pay. Include passwords as well. Store in a secure location that a trusted person has access to.
Plan your funeral – Consider planning your funeral arrangements in advance to make the post-death process less burdensome for your loved ones. Document your wishes with respect to choice of funeral home, memorial wishes and logistics, and even consider drafting your own obituary, describing your legacy in your own words. Consider purchasing a pre-need policy.
Communicate with your family or someone you trust – Talk to your family or other trusted individuals about your estate plan to minimize any surprises or conflicts. This article can help serve as a conversation starter.

An important purpose of creating an estate plan is to provide both you and your loved ones with peace of mind. Taking these actions will help your loved ones and trusted contacts avoid navigating a complex maze filled with potential conflicts, delays, and costs. Contact us at (888) 727-9191 or visit our website at https://www.memberstrust.com to learn more about how we can assist you with your estate planning needs.