10 Questions to Answer When Planning Your Estate
By Sara Lancaster
Beginning the estate planning process can be daunting. Even with an estate planning attorney at your side, the terminology, the tax information, and the personal decisions can be overwhelming.
Below are ten questions you should answer for yourself before you sign any documents. Most estate plans include a last will and testament and a durable power of attorney. Other, more complicated estate plans may include a trust, marital agreement, and even business incorporation documents.
1. If I’m elderly or close to death, do I want to be resuscitated? This question will be asked in your durable power of attorney.
2. How long would I want to be hooked up to a feeding tube and breathing machine? Again, your durable power of attorney will address this issue.
3. Do I want my heirs to inherit my money and belongings equally or are there special circumstances? In most cases, assets are distributed first to a surviving spouse, then to children equally, grandchildren equally, and so on. If you plan to gift money or assets to any of your heirs before you die, there are ways to outline that in a will so all of your heirs are treated equally. If you want to give money to someone other than an heir including an organization or a friend, you can outline that in a will along with any other special requests too.
4. Who do I want to be responsible for my estate after I die? If you don’t have a spouse or are not certain your spouse will be able to manage your estate, consider having more than one personal representative to manage your estate. Be sure to ask those individuals about taking on the responsibility before you name them in your will.
5. Would it make more sense to form a trust or LLC for my land holdings or other large assets? Sometimes a trust or forming an LLC makes more tax sense than leaving assets in your estate. Ask an attorney what he or she recommends before you decide for sure. If you do go this route, you’ll need to name a trustee just like you name a personal representative.
6. Who will look after my young children? Choosing a guardian is no easy task, but it is a necessary one. Be sure to discuss this choice with the guardians you select.
7. Which one of my children should get the china? Most wills don’t include a section for small household items or collectables. If you are choosing to give personal items to someone after you pass away, make it known in the document that you attach to your will. This document is called a codicil and will be handwritten or typed by you. Be sure to keep multiple copies of the codicil as well as all your other estate planning documents.
8. What kind of funeral and burial do I want? Many people include a short section in their will about disposition; especially if the person wants a green burial or an exotic burial.
9. Do I need life insurance and who is the beneficiary of my life insurance? Life insurance will cover the expenses associated with your death such as funeral expenses, taxes, and lawyer’s fees. An insurance company will work with you to name a beneficiary and coverage levels.
10. Do I even need an estate plan? Estate plans offer peace of mind and they help those that survive you. If you don’t have many assets and you have people you know will look after your money and things, an estate plan may not be necessary. At a very minimum, be sure to tell your loved ones your burial preferences and where you want your personal items to go.
Estate planning can be a complicated endeavor. Always consult a professional if you are unsure about something and never be afraid of asking questions.
