1. Seek professional advice.
2. Do not rush the process. I advise my clients that the probate process is a marathon, not a sprint. Of course, if the executor follows tip one, he would know this.
Once you have a will, you should do the following to make the executor’s eventual task easier:
1. Inform your executor where the will is located.
2. Place a list of your financial assets, including life insurance policies, with the will.
3. Place a list of on-line passwords with the the will.
4. Place a list of instructions about various items of personal property with the will.
Do not place the will in a safe deposit box – it will be inaccessible.
Living wills are great conceptually, but can be vague when actually needed. Some advisors propose making them more detailed and walking people through a lengthy series of questions about specific situations. Because this topic makes clients squeamish on a good day, and because clients’ wishes about death change as it becomes more imminent, people either would not complete a living will or it would not reflect their current wishes. The proposed solution is no solution.
Instead, I recommend executing a health care power of attorney in addition to the living will. The health care power of attorney allows a family member to make decisions for the incapacitated client. After executing the health care power of attorney, it is imperative to discuss wishes with the designee. Of course, with Obamacare’s “death panels,” perhaps this will all be moot.
Choosing a trustee to manage funds for your children is second in importance only to choosing a guardian for them. I advise separating the trustee and guardian duties. Unlike the author, if there is no perfect candidate, I recommend a bank or trust company rather than two “B” candidates. After all two Bs, still average a B. If there is not a suitable family member, go for the “A” of professional investments and management provided by a trust department.
What should you tell your children about your estate plan?
1. Which child is in charge of the estate.
2. Which child is in charge of the medical decisions and what your wishes are.
3. Where the documents are located.
Do not tell them which child you love the most/least.