Many years ago, during the Winter Olympics, Apolo Ohno was asked what he felt he did to prepare for competing in the Olympics. He responded, “Every Olympic athlete prepares differently. For me, I am 100 percent into the sport. And if I decide to really make a crucial career decision to say, 'This is something I want to do,' I want to leave no stone unturned in my preparation.”
Now that you’ve signed your estate plan, you may be asking,“What do I do now?” Like Apolo Ohno, you do not want to leave any stone unturned. You likely started this estate planning process because you want to keep things simple and organized for your beneficiaries after you have passed. No one wants to leave a mess after they pass away. Likewise, no one wants to inherit a mess. A little work today will alleviate a lot of heartache and problems for your family later. But, what all must you do after signing your estate planning documents? Below are some outlined suggestions:
1. Compile a list of your stuff
The first thing you should do after signing your estate planning documents is create an inventory of assets, policies, liabilities, account numbers, and passwords. There is so much information that only you know. You should set some time aside to compile a list of the stuff you own. These should be physical assets like real estate, vehicles, gold, or silver. You should include other assets like information regarding your checking and savings accounts, as well as information regarding your investment and retirement accounts, as well as any insurance policies you may have. Do not forget to include a list of digital assets and information regarding your online presence, like your online profiles and passwords.
2. Designate beneficiaries, transfer on death, or payable on death and fund your trust
As your compile your asset list, evaluate whether those assets are owned by your trust (if you have one), if that asset should have a beneficiary, a pay-on-death, or transfer-on-death. So many people have assets with beneficiaries listed and it is important to review who you have listed on those accounts. Analyze how that pairs with your newly created estate plan. These accounts can be beneficial in passing substantial wealth to your beneficiaries. Are you still comfortable with listing the beneficiaries on these accounts? If not, contact that institution and change the beneficiaries. For some accounts and policies, it may make sense to list a trust as the beneficiary.
If you have a trust, do not forget to take your bank letter to your bank. That explains that you would like to list the trust as the pay-on-death beneficiary to your checking and savings accounts. This will help ensure your money in those accounts can pass into your trust, outside of probate.
For some assets, it may make sense to have a transfer-on-death attached to it. These can be assets like stocks and vehicles.These assets would stay in your name while you are alive and pass to who you have designated after you pass away. That could be a trust (including your own) or an individual.
3. Set up a meeting with a financial advisor and necessary health care professionals
It is so important to sit down and evaluate how your investments are doing. After completing your estate plan, this is a great time to sit down with an advisor and make sure that you are on track to meet your financial goals. Often times, people have their estate plan working to accomplish a goal and their financial plan is trying to accomplish a completely different goal. Evaluate that your financial and investment plans are still moving in the direction you want them to.
You may schedule an appointment with Oath’s financial advisors. This can be to help achieve your financial and investment goals or it could be to get a second opinion on your investments.
Additionally, after signing your new health care documents, it is important to provide copies to your doctors.
4. Plan for funeral expenses and funeral arrangements
You have already done so much heavy lifting, do not stop there. Located in your estate planning portfolio is a section entitled Funeral Arrangements. By filling this section out, you are taking a huge burden off your spouse, your children, or other people you will leave behind. You may also choose to look into burial or cremation. By prepaying for your funeral expenses ahead of time, you will make it easier for them to remember your life and legacy. If you have already prepaid for burial or cremation services, grab a copy of any documentation you may have for this and slip it into your estate planning portfolio.
5. Consider utilizing your personal property memorandum
Located in your estate planning portfolio is your Personal Property Memorandum. When you follow the instructions in this document, it will ensure that the person you have designated on that document will get the specific personal property you have listed.
6. Write letters to family members or friends
While it is true that some things are better left unsaid, that is not true when it comes to expressing your feelings to the ones you love the most. Take the time to write down your love and feelings for your family members or friends. A loved one’s passing can be a difficult thing for those left behind. Don’t leave anything unsaid. Make sure the people you love and care about know how much you love, respect, and value them.
One specific letter you may consider writing is a set of instructions to your personal representative or your trustee. You may wish to provide additional information regarding distribution or your wishes around a certain issue. This may help prepare your personal representative for administration and equip them better to carry out your wishes. Remember, these instructions are to help prepare for administration after you pass. It does not supersede your estate plan.
7. Create a cheat sheet budget
There are so many things that only you are aware of: an upcoming bill, an online subscription, or a streaming account. Create a quick, rough budget of regular occurring bills, when they are due, and a rough estimate of how much the bill may be. This is helpful if you are married. No one wants to pass away and take all the secrets of the budget with them. This will be helpful if you predecease a spouse and may be helpful for your family in knowing which companies to notify of your passing.
8. Create a cheat sheet of names and contact information.
You should create a cheat sheet of contact information of relevant family, friends, and other necessary parties. On this list could include information regarding your spouse, children, grandchildren, siblings, nieces and nephews. It should also include contact information for your attorney, financial advisor, insurance companies, and whichever company you have prepaid for that burial or cremation. This cheat sheet list will be helpful for your family in organizing your funeral arrangements after you pass and notifying the necessary members of your family and your friends. This will also be helpful because it will provide necessary contact information for your trustee or personal representative to begin administering your estate.
This may seem like an extraordinary endeavor, and it is. However, the work you do today will save the people you may leave behind so much time, energy, money, effort, and heartache. Having a robust estate plan with all the necessary information is not something that is done in one day. It is something that slowly takes time. Remember, failing to plan is planning to fail and we do not want to leave any stone uncovered. But your family will be that much more appreciative of it when the time comes for them to utilize your estate plan.
Sign up for one of our free estate and retirement planning workshops at www.oath.law/workshops or request a free consultation.
