Easing the Burden
Here are seven tips I use to help my clients of any age make life easier for those they leave behind.
- The will names an executor and, if you have children under 18, is essential for naming a guardian. A will is not the best document to use. The time delays and probate costs hurt the family almost as much as the departed loved one. If you have gross asset values (no deductions for liens or encumbrances) in excess of $100,000 it makes economic, business and emotional sense to have a Living Trust drafted (Revocable Intervivos Trust).
- Items to include are a net worth statement, contact list of relevant parties, last wishes, valuables list and a key documents reference for originals.
- Arrange for a financial institution to hold them. This will keep assets from being overlooked when the estate is settled.
- Another option is to set up an investment account with pay-on-death designation to the executor.
- Ethical wills can tell a family history, share values, explain estate planning decisions or express feelings toward family members. Two sites that offer helpful advice are www.ethicalwill.com and www.personalhistorians.org.
- At least once every five years, you should meet with everyone significantly involved in the estate. At a minimum, this would include the executor, trustees and primary heirs to make sure there are no surprises later on.
One of the first steps in this whole process is to assess your values before you value your assets. Next, you should follow an Empowered Wealth System and, lastly, develop a Family Empowered Bank. Going through this experience will be one of the most insightful experiences you go through. Each client I work with on these steps are forever greatful.