Estate Management Checklist

What is estate planning?

Your estate includes all your possessions—everything you own. Estate planning is preparing a plan in advance to ensure your wishes (who will receive everything you own) are carried out upon your death.

An estate plan can include the following documents:

• Trust
• Will
• Powers of attorney
• Beneficiary forms

Your estate plan will not only handle asset distribution at your death, but it will also list the name of the person who will make financial decisions on your behalf if you were to become incapacitated.

What is the difference between a will and a trust?

A will enables you to specify who you want to inherit your property and other assets. A will also enables you to name a guardian for your minor children. A will is only effective at death, and the assets are subject to probate.

Trusts are legal arrangements that provide for the transfer of assets from yourself to an entity.  Trusts hold assets for one or more beneficiaries. They often allow for more flexibility and control when making gifts. Trusts also typically avoid probate.

Who needs estate planning?

The answer to that question is simple­­—EVERYONE.

Estate planning is not just for retirees and the wealthy, although as you age and gain more wealth, your estate may be at the forefront of your mind. However, unless you have a magic crystal ball, none of us can predict how long we are all going to live.

It’s never too early to get your estate in order--no matter your age or estate size. Making these plans and decisions now will protect your family from worrying and dealing with the courts later.

What estate planning documents do you need?

Here are the questions you can ask yourself when focusing on and sorting out estate planning documents.

Do you have financial documents in place?

Certain financial documents can outline your financial wishes. If you become unable to make decisions for yourself, these financial documents can be structured to empower a person and an alternate to make decisions on your behalf. These documents may include joint ownership, durable power of attorney and living trusts.

Have you filed beneficiary forms?

In some cases, naming a beneficiary for bank accounts and retirement plans makes these accounts "payable on death" to your beneficiaries. In other cases, you will need to fill out a "Payable on Death" form.

Do you have the right amount and type of life insurance?

When was the last time you assessed your life insurance coverage? Have you compared the life insurance benefit with your financial obligations? Keep in mind that several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased.

Do you have healthcare documents in place?

Healthcare documents spell out your wishes for health care if you become unable to make medical decisions for yourself. They also authorize a person to make decisions on your behalf if that should prove necessary. These documents may include a living will, a power of attorney agreement and releases for information.

Have you taken steps to manage your estate and income taxes?

If you and your spouse have more than $24.12 million in assets (for 2022), you may want to consider taking steps to manage federal estate taxes, which will be due at the second spouse's death.¹ There may also be opportunities to minimize income taxes for yourself or your heirs.

Have you taken steps to protect your business?

Do you have a succession plan? If you own a business with others, you may also want to consider a buyout agreement and a funding plan for the buyers

Have you created a letter of instruction?

A letter of instruction is a non-legal document that outlines your wishes. A strong, well-written letter may save your heirs time, effort and expense as they administer your estate.

Will your heirs be able to locate your critical documents?

Your heirs may need access to the specific documents you have created to plan your estate. These documents may include:

• Your will
• Trust documents
• Life insurance policies
• Deeds to any real estate, and certificates for stocks, bonds, annuities
• Information on your financial accounts and safe deposit boxes
• Information on your retirement plans
• Information on any debts you have: credit cards, mortgages and loans.
• A list of tangible personal property
• Digital Property Information
• Crypto currency (Cryptocurrency or crypto-currency)

Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

How much does estate planning cost?

Estate planning and its costs may be confusing, but it doesn’t have to be. Costs may vary; however, and more importantly, what is it costing you and your loved ones if you don’t have an estate plan? We can help.

Why is estate planning important?

Estate planning is important at any age as it ensures your possessions and funds are bequeathed based on your wishes.

Careful estate planning can help preserve the wealth you’ve worked so hard to attain by reducing or eliminating estate taxes as well. We can protect your interests by helping you implement your estate plan, allowing you to choose a personal representative, establish bequests, make provisions for disabled heirs, nominate guardians and/or reduce the cost of estate settlement.

Our experienced trust and estate advisors will work closely with you to understand your goals and develop a detailed strategy to help you achieve them. Whether you’re looking to protect your most valuable assets, ensure tax-advantaged wealth transfers and charitable gifting, or establish professional trustee services to step in when you’re not able, our advisors have the expertise to craft a financial plan built around your needs.

If you have more detailed questions about estate planning, find a team near you and connect with an Associated Bank financial professional today.

1. IRS.gov, 2022