Elder Law FAX -- January 30, 2006

How Your Heirs Can Get the Most Benefit Out of Your Estate

Following are tips for ensuring that your heirs will get the most benefit out of your estate.

1. Establish a budget for your final arrangements or purchase a pre-paid funeral plan during your lifetime.
2. List your important papers, including where these items can be found.
3. Create a long-range plan and leave detailed instructions for how the proceeds of life insurance policies and other assets should be used to meet the needs of your beneficiaries. Don't forget that health, disability, and long-term care insurance may have a place in your long-range plan.
4. List IRAs and other retirement accounts, and include all benefits, terms, and penalties for early withdrawal.
5. List other assets that can be converted to income-producing property if necessary.
6. If you own a business, provide instructions for keeping the business running profitably. If you have a partner, make sure your heirs know what the terms of the partnership are.
7. List the names and addresses of your important advisers, what they do, and who should be called first in the event of your death or disability.
8. Inventory your assets, list when and for how much you acquired each asset, and give instructions for how the assets should be sold and for how much. This is particularly important if you have assets such as art, collectibles, and real estate.
9. Provide a budget of what it costs to run your household.
10. List your debts and bills. Include due dates, payment terms, and amounts owed.
11. List the insurance policies you have in force, their beneficiaries, benefits, due dates, and premiums paid.
12. List essential information about yourself, such as your Social Security number, safe deposit box number, personal safe combination, computer passwords, etc.
13. If you are a veteran, remember that your military discharge papers (DD-214) will be needed to collect any benefit to which your heirs are entitled.
14. List all credit cards, account numbers, etc., and indicate which credit lines should remain open after your death and which closed.
15. List who owes you money. Include amounts owed, repayment terms, and the location of promissory notes, mortgages, etc. held by you.
16. If you own a computer, consider purchasing a home finances software program such as Quicken or Microsoft Money to use in maintaining this information.

Once collected, this information should be updated annually and kept in a safe and convenient place. A checklist is recommended: but don't forget to put your name and the date on it. On completing the items, you may wish to give copies to the people who will be involved in settling your estate, such as the Personal Representative named in your Will.

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