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When the factors surrounding an estate are analyzed, it is necessary to consider all of the factors, not one or two. Depending on the circumstances, different factors carry more weight in the decision-making process. For instance, if federal estate taxes are due at 45% of the amount over the allowable exclusion amount, this becomes the most important factor and requires the most planning. If no federal estate taxes will be due, probate avoidance, Medicaid planning, or income tax (step-up in basis) may be the most important factor for consideration. It is often a juggling act and all factors need to be taken into consideration. Planning for the current needs and the changing needs that might occur is necessary and having flexibility within your estate planning legal documents is imperative.
During Lifetime/Competency
Last illness - make certain you have executed a Power of Attorney in case of incompetence.
Don't forget the Living Will / Durable Power of Attorney for Healthcare if so desired.
Funeral/Burial
Preplan your funeral -- buy a cemetery plot and plan as much as you feel comfortable with.
Pre-write the obituary so everyone and everything desired is included.
Legal Papers
Have legal papers in an easily accessible location.
Have an updated Will.
Investments
Leave detailed lists.
If you have many different stocks, use a brokerage account. If you have a trust, make certain it is funded appropriately.
Leave a good map of where assets are and how to contact the sources necessary.
Check and re-check your beneficiary listings to make certain they are up-to-date and correct.
Tangible Personal Property
If there are specific items you wish to go to certain people, leave a clear and detailed list to that effect.
Suggest that your children make copies of family photos.
Make it your project to identify family members in photographs. You may be the only person who knows certain people in family photos.
Values
Transfer your values to your family members by writing them out. Topics might include the use and attitude toward money, spending, the ways to live life, civic mindedness, helping others, etc.
For example -- “I earned this money -- spend it wisely,” or “I value education, right use of money, no splurging, etc.” or: “I value spirituality: make certain you keep yourselves spiritually fit, these are the ways I did that….”
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