Estate Planning Checklist

Estate Planning: A Checklist of Essentials

As school starts again and we are getting back to our routines, this may also be a good time to review the following list of estate planning essentials. This is a good checklist to scroll through at least once a year and upon any significant life changes. We will be there to remind you as your life events unfold.

Check Your Beneficiaries: We cannot say this one often enough. Check the beneficiaries on your retirement accounts and your life insurance policies at least once a year and remember to update your beneficiaries upon births, deaths, marriages, and divorces. It is important to have both Primary and Contingent beneficiaries listed. If your retirement account is managed by Warren Street, we will review your beneficiaries during your annual review meeting.

Set Up TOD/POD On Brokerage And Bank Accounts: If you do not have a Trust established yet, be sure to set up a TOD (Transfer On Death) or POD (Payable on Death) feature on all brokerage and/or bank accounts. This feature will add beneficiaries to your accounts, and will keep the accounts out of probate.

Don’t Name Minors As Account Beneficiaries or Life Insurance Beneficiaries: If you do, your estate will need an appointed guardian and will potentially need to provide annual accountings to the probate court. If you want the assets to ultimately flow to a minor, the best option is to name a Trust as the beneficiary of beneficiary-driven accounts.

Review Your Trust, Will, Advanced Health Care Directive, Durable Power of Attorney: If you have not yet established the four documents listed above, please contact Warren Street and we will connect you with an estate attorney. If you have gone through the process of setting up your Estate Plan, you should review these documents on a regular basis. If you would like Warren Street to review these documents with you, please contact us.

Transfer Your House To Your Trust: Once your Trust is established, you will be instructed by your estate attorney to transfer your primary residence to your Trust. If you do not have a Trust yet, and you live in CA, you can add a Transfer-On-Death Deed to your property to name beneficiaries and to keep the property out of the probate process.

Simplify Your Balance Sheet: We are often in the position of helping clients when a family member has passed away. When individuals have several different retirement accounts and several different bank accounts, it can create unnecessary complexity for their beneficiaries. It is often a good idea to consolidate accounts to the extent possible at a minimal number of institutions — this will not only make your life easier, it will also make life easier for your beneficiaries when you pass away.

Guardianship Designations: If you have minor children, it is important to name your chosen Guardians should something happen to you. This will normally be taken care of with your estate attorney during the estate planning process, and these Guardians will be named in your Will. Review these designations on a regular basis.

Review Your Life Insurance Coverage — Is It Enough?: At Warren Street, we typically recommend Term Life Insurance policies with level premiums (policies for a set number of years with a set premium) for clients who have dependents. If you would like us to review your current coverage, please contact us.

Business Owners Should Consider a Buy-Sell Agreement: A Buy-Sell Agreement provides a mechanism for business succession if an Owner should retire or pass away. It is best to establish these agreements long before any transition process. We recommend you work with an experienced attorney to establish your agreement and we recommend that every co-owned business go through this process.

This is just a starting point, and there are certainly more complex issues to address if your estate might be facing an estate tax bill when you pass away. If you have any questions about the specifics of your estate plan, please feel free to reach out to us — it is what we are here for!

Emily Balmages, CFP®, CRTP

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

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