ESTATE PLANNING CHECKLIST 10 Questions to Ask Yourself
ESTATE PLAN CHECKLIST: 10 QUESTIONS TO ASK YOURSELF Whether you don t yet have an estate plan or you have a plan in place, this checklist can help you ensure your plans are up-to-date. A yes answer to any of the questions below means it s time to create or update your plans.
1. Have you welcomed a new child, grandchild or great-grandchild? You may want to name your children, grandchildren or greatgrandchildren as beneficiaries. One word of caution: don t designate a minor (a child under age 18) as a beneficiary. If you do, the state will appoint a conservator of assets until the child comes of age. Instead, if you want a minor child to inherit financial assets, you may wish to create a trust for his or her benefit and name the trust as the beneficiary. That way you control the terms under which your child or grandchild has access to the funds. 2. Has your marital status changed? If you are recently married you may want to name your spouse as your beneficiary. Some states automatically eliminate former spouses as beneficiaries; others don t. If you are part of a samesex couple you will certainly want to seek expert advice since not all states recognize same-sex marriages. 3. Have you entered the workforce or changed jobs and rolled over your retirement plan? If you re newly employed, you probably participate in a retirement plan; you might also have a life insurance policy. Distribution of these assets is governed by the beneficiary designation forms you completed. If you have a new job and have moved money from your former employer s retirement plan into your new one or into an IRA, your beneficiaries lose any claim to those assets. So you ll want to ensure they re named as beneficiaries on the new account or policy. If your new job involved a promotion, perhaps the size of your estate has grown, prompting you to consider changing the size of the distributions you ve designated.
4. Has your financial institution changed ownership? These days, when banks, brokerages, or mutual funds merge, they sometimes drop the beneficiary designations for older accounts. 5. Is your estate executor still the right person for the job? The person you ve chosen to be your personal representative or executor (the person designated by you to settle your estate and distribute all your possessions) may need to change over time. It s a good idea to consider whether their circumstances have changed in some way. For example, are they no longer of sound mind and capable of serving in the role you have designated? Is person you ve named no longer interested in serving as executor or do they have a conflict of interest? These are definite reasons you may need to immediately update your will. 6. Have you moved to a new state? If you have moved out of the state where you executed your will, you should consult an attorney in your new location to determine whether it is still valid. State laws regarding wills vary, and you shouldn t assume that your old will meets your new state s requirements.
7. Has your health changed? The diagnosis of a degenerative disease or terminal illness can throw families into crisis. Some people take comfort in getting their estate plans in order. This is the time to have your lawyer review any documents and bring them up-to-date. 8. Are you wondering how taxes might affect your estate? Estate tax law, especially Federal estate tax law, seems to always be changing. It s a good idea to periodically make sure your plan responds to current tax law and to update your plan according to any change in tax law. Keep in mind that even if you believe your estate is not subject to Federal estate taxes, many states levy their own estate taxes, so be sure you ve considered both. 9. Have your children reached the age of 18? Everyone over the age of 18 should have their own will. Also, at that age parents are no longer legally considered the child s representatives for medical or financial decisions. 10. Have you decided to incorporate a gift for a favorite charity into your plans? Many people like to leave a gift to charity in their plans. We hope that as you create or update your plans, you will consider a gift for Earthjustice. The most popular future gifts a gift through your will or trust, naming Earthjustice a beneficiary of retirement plan assets or a life insurance policy or funds remaining in a bank or brokerage account are the easiest to execute and offer you a variety of benefits. They: Cost you nothing now. You retain control of your assets for as long as you need them. Permit you to change your mind at any time, for any reason. You can change your beneficiaries at any time, usually at no cost. Enable you to provide for loved ones and for Earthjustice. Designating a specific amount or percentage to Earthjustice leaves the majority of your assets for loved ones. Allow you to set the amount you donate. You decide the specific amount or percentage of your estate you wish to donate.
Ensure that you can remain anonymous, should you choose to do so. Your gift can be kept entirely private if you wish. Establish your lasting legacy of a healthy planet. Leaving a gift to Earthjustice ensures your commitment to protecting people s health, preserving magnificent places and wildlife, advancing clean energy, and combating climate change. TO LEAVE A GIFT FOR EARTHJUSTICE, PLEASE USE THE FOLLOWING LANGUAGE: I hereby give (percentage, residuary, share or specific amount or asset) to Earthjustice 50 California Street, Suite 500 San Francisco, CA 94111. Earthjustice Tax ID: 94-1730465 Download our complimentary planning publications at www.earthjustice.org/planning For more information: Tracy Donahoe, Director of Planned Gifts Linda Coffee, Development Officer, Planned Gifts 50 California Street, Suite 500, San Francisco, CA 94111 (800) 584-6460 or legacy@earthjustice.org