Getting Your Estate Plan in Order

Death brings a deep sadness that impacts our emotional, mental and physical state.  At such a difficult time, there is often the added strain of having to make endless decisions such as notification of friends and family, funeral arrangements, ordering death certificates, and handling financial issues.  Moreover, you must be mindful of the requirements of the IRS, Social Security Administration, and compliance with state inheritance laws.  While you should work with an estate planning professional, below are some suggestions to help make everything flow smoothly when death does occur:

1. Discuss the issue of death with your family.  Determine what each person’s end of life wishes are. 
2. Become aware of the inheritance laws in your state.  There are only nine community property states and inheritance laws can vary significantly.  Even if you have a will, your wishes are not necessarily set in stone. 
3. Ensure that beneficiary assignments on life insurance, annuities, IRAs and 401(k)s are up to date.
4. Consider setting up a joint checking account with your chosen executor.  This will provide the necessary funds that will be required to pay for funeral expenses, travel for family members, obituary costs, and the like. 
5. Create a secure filing system that is easily accessible where you keep your important documents such as birth certificates, Social Security numbers, and marriage licenses. 
6. Be sure to secure a list of all passwords for your electronic files, all online accounts, pin numbers, cell phone passwords, and social media usernames and passwords.

See Melody Juge, 9 Steps to Getting Your Estate Plan in Order, Market Watch, Nov. 3, 2014.