May 8, 2008 Dollar & Sense
May A message from the MEMBERS Financial Services Program While most of us need an estate plan, few of us actually take time out of our busy schedule to put one together. Good news – it might not be as difficult as you think.
Start with the Basics
What if you were to die without a will? As the foundation of your estate plan, a will provides for distribution of your assets, names a guardian for your minor children, and appoints an executor or personal representative to see that your wishes are carried out. If you die without a will, a court will make these decisions for you. Consequently, your estate may not be distributed as you would have wished. Failing to create a will means you relinquish control over what will happen to your assets — and perhaps your family’s financial status — upon your death.
Establish Powers of Attorney
Planning for your own incapacity is not something we like to thing about, but it is a critical part of your estate plan. Think through who you want to make important medical, legal and financial decisions for you if you can’t speak for yourself. Work with an attorney to draw up all of the necessary powers of attorney to designate that person to make those decisions for you. Then, make sure that person has notarized copies of all of those documents.
Minimize Estate-Tax Consequences
You probably don’t want a large portion of your assets to go to the government in the form of estate taxes. But that’s what could happen if you don’t plan ahead. Work with both an estate planning attorney and a financial advisor who specializes in estate planning to develop a comprehensive plan that addresses of your needs while you’re alive, and passes your remaining assets most efficiently after you’re gone.
Leave a Paper Trail
An estate plan isn’t very useful if no one in your family knows what it is, so be sure to maintain clear records. Make a list of your assets, including securities, retirement plan accounts, savings accounts, real estate, life insurance policies, and so on, along with information to identify and locate the accounts. Make a second list of your liabilities, including loans, mortgages, and credit card obligations.
Personal information, such as your Social Security number, birth certificate, divorce decree, and similar documents, should be stored in a secure and accessible place. Include cemetery plot records and detailed funeral instructions. List the names, addresses, and phone numbers of your attorney, accountant, executor, and trustee, if applicable. Then, most importantly, tell someone where this information is kept. If you put these documents in your safety deposit box, designate someone to have authority to open the box without your presence or consent.
Start Today
The consequences of waiting too long to plan your estate can be financially and emotionally devastating for your family. If you haven’t started to plan your estate, a professional financial planner can help you get started and recommend strategies to help achieve your particular estate planning objectives. CRN200702-2002928
*Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members.
|
