11 Important Things to Get Done Before You Die

Creating a comprehensive estate plan to deal with your assets and provide for your loved ones after your death is one of the most rewarding tasks you can undertake. You will feel an enormous sense of accomplishment when you complete your estate plan. You see, the state already has a will for you (sometimes referred to as the “intestacy” statute). The distribution of assets contained in this statute is not how most people would want their property distributed upon death. Not only is it important that you have a plan in place in the unlikely event of your death, but you must also implement your plan and make sure others know about it and understand your wishes. From my years as a Certified Financial Planner®, I can tell you that the only thing worse than dying  without an estate plan, is not implementing the one you already have in place!

Here’s what needs to be done.

1. Do a Physical Items Inventory

To start, go through the inside and outside of your home and make a list of all items worth $250 or more. Examples include the home itself, TV’s, jewelry, collectibles, vehicles, guns, and so on.

2. Follow with a Non-Physical Items Inventory

Next, start adding up your non-physical assets. These include things you own on paper or other entitlements that are predicated on your death. Items listed here would include: brokerage accounts, 401(k) plans, IRA assets, bank accounts, life insurance policies, and ALL other existing insurance policies.

3. Assemble a Credit Cards & Debts List

Here you'll make a separate list for open credit cards and other debts. This should include everything such as auto loans, existing mortgages, home equity lines of credit, open credit cards - with and without balances, and any other debts you might owe. A good practice is to run a free credit report at least once a year. It will identify any credit cards you may have forgotten you have. Get online and search FREE CREDIT REPORT.

4. Make an Organization & Charitable Memberships List

If you belong to certain organizations such as the AARP, The American Legion, Veteran's associations, AAA Auto Club, College Alumni, etc., you should make a list of these. Include any other charitable organizations that you proudly support or make donations to. In some cases, several of these organizations and your credit card companies have accidental life insurance benefits (at no cost) on their members and your beneficiaries may be eligible. It's also a good idea to let your beneficiaries know which charitable organizations are close to your heart.

5. Review IRA, 401(k) and Other Financial Accounts

Accounts and policies in which you list beneficiary designations pass via "contract" to that person or entity listed at your death. No matter how you list these accounts/policies in your will or trust, it doesn't matter because the beneficiary listing will take precedence. Contact the customer service team or plan administrator for a current listing of your beneficiary selection for each account. Review each of these accounts to make sure the beneficiaries are listed exactly as you like.

6. Assign POD Designations

POD stands for payable on death. Many accounts such as bank savings, CD accounts and individual brokerage accounts are unnecessarily probated every day, because beneficiaries are not named. Contact your custodian or bank to set this up on your accounts.

7. Select a Responsible Estate Administrator

Your estate administrator will be responsible for following the rules of your will in the event of your death. It is important that you select an individual who is responsible and in a good mental state to make decisions. Don't immediately assume that your spouse is the best choice. Think about all qualified individuals and how emotions related to your death will affect this person's decision-making ability.

8. Create a Will or a Revocable Living Trust

Everyone over the age of 18 should have a will or trust. It is the rule book for distribution of your assets and it could prevent havoc among your heirs. Wills are fairly inexpensive estate planning documents to draft. Most attorneys can help you with this, or there are several good will-making software packages available online.

Review your will for updates at least once every two years and after any major life-changing events (marriage, divorce, birth of child, and so on). Life is constantly changing, and your inventory list is likely to change from year to year too.

9. Implement Important Estate-Plan Documents

Procrastination is the biggest enemy to estate planning. While none of us likes to think about dying, the fact of the matter is that improper or no planning can lead to family disputes, assets going into the wrong hands, long court litigations and huge amounts of dollars in federal tax.

At minimum, you should create a will, power of attorney, for medical & financial decisions, and living will – and assign guardianship for your kids and pets. If you're married, each spouse should create a separate will, with plans for the surviving spouse. Also make sure that all concerned individuals have copies of these documents.

10. Simplify Your Finances

If you've changed jobs over the years, it's quite likely that you have several different 401(k)-type retirement plans still open with past employers or maybe even several different IRA accounts. While this normally won't create a big problem while you're alive (except lots of additional paperwork and account management), you may want to consider consolidating these accounts into one individual IRA account to take advantage of  lower costs, a larger selection of investments, more control, less paperwork and easier management. The same goes for multiple bank accounts – consolidate!

11. Visit your Financial Planner or an Estate Attorney

While you may think that you've covered all avenues, it's always a good idea to have a Certified Financial Planner® review your investments, retirement plans, and estate plans annually. Once every five years, visit with your attorney. As you get older, life throws new curve balls at you. Tips like having an emergency medical contact card in your purse or wallet and sharing a list of passwords for all your online accounts are little things many people never think about. Tax laws, investment options and legal issues change at a faster pace these days.

The Bottom Line

You now have the ammunition to get a pretty good start on reviewing your overall financial and estate picture. While you're sitting around the house watching your favorite sports team or television show, pull out a tablet or laptop and start making your lists. Bring your questions to the pros at Robert Gordon & Associates, Inc. and let us help you maintain financial peace of mind.