There’s an old saying that there are
only two certainties in this world, death and taxes.
When someone doesn’t properly plan, it’s also a sure thing that their heirs will experience added stress and expend unnecessary time and money to pick up the pieces.
How can you alleviate this burden from your loved ones?
Here are some tips:
- Make sure that someone you trust has an inventory of your assets. This should be a list of everything you own such as bank accounts, insurance policies, brokerage accounts, stock options, etc. The inventory should also list each institution holding the assets. Don’t worry, the inventory does not need to list values if you don’t want it to. It should instead just be a map for your future executor to find everything.
- If you own a business, someone should have a detailed action plan for how to run things once you no longer can. That includes things like contact information for vendors and passwords. Be as detailed as possible.
- Assuming you have a will and other estate plan documents – if you don’t, get them! – review them regularly so you know they reflect your life situation. Major life events like births, marriages, divorces and death can dramatically change who does and does not inherit from you.
- On that note, be clear in your documents who and where people are. If you want to leave money to your friend “Bill”, provide his full name and other information such as his address. Specificity can head off debates later when you won’t be around to clarify which “Bill” should inherit.
These are just a few tips. There are many others that a seasoned professional such as an attorney or accountant can guide you on.
Let us know if you would like a referral to an attorney specializing in this field. We have a great resource who will help you through the process!
Contact Cheryl at cheryl.blazej@blazejaccounting.com if you would like more information.