As people get older, many begin to think about doing some estate planning. This is something we should all do right away, since we don’t know how long the Lord will allow us to occupy this earth, yet it is something we love to put off until “later.”
RumboughMany times, the difficult part is gathering information about assets and liabilities, and determining who will inherit what. Here are some pointers to consider when you are working on your estate plan.
Of utmost importance is to make sure you have a will and/or other estate-planning documents in place so that there is no question as to the disposition of your estate.
The next thing you need to do is to organize your financial and other important records so that when you pass away, those responsible for your estate have a clear picture of what they need to deal with. Get a three-ring binder and place a copy of all of your documents in it. This would include a copy of your will and other estate-planning documents, deed, bank statement, retirement account statement, titles to cars, etc. Write on each copy where the original document can be found. Also, place in your notebook other information, such as where your safe deposit box and the key to open it are, and where you keep your checkbook.
Make a list of the people who need to be contacted in the event of your death, such as your employer, retirement plan administrator, attorney, insurance provider, etc., and include their contact information, as well as any applicable account numbers.
Finally, consider writing a letter to your spouse, children, friends, etc., to be included with your other papers. This gives you an opportunity to tell them again how much you love them, why you left them a certain item, etc. It also may become the most valuable inheritance they receive from you. Your heirs will thank you for taking the time to organize!
– Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina. Contact her at 800-723-7242. In accordance with IRS Circular 230, any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.