In my last article about estate planning, I opened with the topic of “what will happen when I die”? Have you given it any more thought? Have you begun putting anything in place to ensure you have peace of mind for you and your family? Planning in an organized, thoughtful, deliberate manner is truly the key. Know what you have, and what you need. This goes hand in hand with my “reduce the potholes” theory.
The simplest way to start, is always at the beginning. Having a will really is the beginning. So let’s assume, you have a current will. It was made within the past few years, and includes any significant life changes. Things such as the death of one of your heirs; the birth of a grandchild; a significant shift in your financial situation; major adjustments to your investment portfolio; real estate purchases and sales; and changes to the tax laws that could ultimately affect how your will will be handled, and/or if it will go to probate, should all be considered.
The next most important piece in the puzzle is knowing where everything is, and what values to attach to them. This might sound simple, but for most of us, once we start thinking about what we have, where everything might be, and what the associated value might be, it becomes completely overwhelming.
It’s not simply knowing where your grandmother’s tea set is, or where your box of Stanley tools that you want your grandkids to inherit is. These sundry items are considered “personal” property and we generally know where these items are. The trickier items are those considered “real” property; items such as real estate, life insurance and investments. Included in this category would also be any debts such as mortgages, unpaid bills, loans or taxes. These items would need to be addressed in a will or at least indicated to your executor.
The other item that unfortunately often goes unaddressed, is the breakdown of funeral expenses. Who will look after these arrangements and associated costs? Are there available funds to carry through with your final wishes? Quite often we aren’t even aware of what our loved one’s wishes were in this regard.
Let’s close today with a final thought on the topic of planning. I always recommend to clients we begin the process of planning their estate with a detailed inventory. This is the most accurate way to move forward, ensuring all items are covered and accounted for. This inventory stage generally opens the discussion for a wider range of items we will discuss in more detail in future articles. It will likely open up some discussion within your own family.
My recommendation – start thinking about your estate inventory today and start talking, it’s never too soon to start.
submitted by Dean Dunbar
Freedom 55 Financial
Fergus
519-843-2056
