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Is your will up-to-date?
A review every 3 or 4 years is often enough. However, the 2001 Tax Act made changes in estate taxation that should prompt a review. In addition, any significant changes in your family or financial status may make a review beneficial.

Many expected that Congress would make changes to the estate tax rules before 2010, but they did not. Most tax professionals believe that Congress will address estate taxes in 2010 and implement some form of estate tax. Some even believe that the change could be retroactive to the beginning of 2010.

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A qualified trust professional can help make sure your plan is up to date. They can also assist in the creation and management of any trusts that may be appropriate.

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Who is the "executor" of your estate?
This person will oversee the activities of your estate until it is terminated (often a year or more). Be sure the person you choose is capable of handling the task and understands your wishes.

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Who is the guardian of your minor children?
If you have chosen a family member, are they aware of your choice and are they willing to accept that responsibility?

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Do you have a current "power of attorney for medical care?"
This document becomes critical if you are unable to make medical decisions and it also can spell out treatment options.

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Do you have a current "power of attorney for finances?"
This document names someone to handle your finances if you are unable to do so. Be sure the person you choose understands the responsibility. Without this document, it may be necessary to get court approvals for even relatively minor decisions and transactions.

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Have you considered a "revocable living trust?"
These ownership arrangements are widely used to help minimize potential probate costs and are relatively easy to establish.

However, getting professional help is a good idea.

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A trust professional can explain this ownership technique and help determine whether may be appropriate.

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Have you considered a life insurance trust to own your life insurance policies?
Life insurance proceeds are not subject to income taxes. However, if the proceeds of your policy pass to your estate, the proceeds may raise the size of your estate and result in increased estate taxes.

Life insurance trusts are relatively common and not difficult to establish with professional help.

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Does your will provide for the establishment of a spousal trust or other trusts?
Many wills provide for trusts to be established to minimize any estate taxes due on the death of a first spouse. The 2001 Tax Act changed the level where estate taxes begin to be due. Be sure your will properly reflects these changes.

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A trust professional can help make sure your plan is up to date. They can also assist in the creation and management of any trusts that may be appropriate.

Estate Planning Basics

Estate Planning is More Than Minimizing Taxes

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Do you have sufficient life insurance to enable your survivors to maintain a comfortable financial lifestyle?
Many advisors suggest life insurance coverage should be at least six to ten times your income. Young children, dependents with special needs, large debts or other issues may make larger amounts desirable.

Consider the benefits and costs of term versus whole life types of policies.

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Understanding and Evaluating Life Insurance

Getting the Life Insurance You Need

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Should you be making annual gifts to family members now to reduce your future estate value?
This may save estate taxes and those receiving the gifts may need it more now instead of later.

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Visit with an estate planning professional to discuss how this technique might reduce any estate taxes that might be due.

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A trust professional can review your current ownerships and help arrange changes that are needed.

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Are your retirement plan (and IRA) beneficiary designation forms up to date?
These signed documents often dictate who will get these funds instead of your will.

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Are there certain assets you want to go to certain individuals?
Family heirlooms or other "special" assets you want given to certain people should be identified in your will.

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