Estate Planning

Estate planning is a confusing yet critical element in the financial planning process.

In partnership with an estate planning attorney, your Wealth Alliance Advisor can help you navigate questions concerning establishing a trust and a will, naming an executor of your estate and more. Regardless of your net worth, it’s critical to understand your choices when developing an estate strategy.

Estate Management Checklist

Here are some initial questions to ask yourself before talking with one of our advisors. Remember, we’re here every step of the way!

Do you have a will?

A will enables you to specify who you want to inherit your property and other assets. A will also enables you to name a guardian for your minor children.

Do you have healthcare documents in place?

Healthcare documents spell out your wishes for health care if you become unable to make medical decisions for yourself. They also authorize a person to make decisions on your behalf if that should prove necessary. These documents may include a living will, a power of attorney agreement, and a durable power of attorney agreement for healthcare.

Do you have financial documents in place?

Certain financial documents can outline your financial wishes. If you become unable to make decisions for yourself, these financial documents can be structured to empower a person to make decisions on your behalf. These documents may include joint ownership, durable power of attorney, and living trusts.

Have you filed beneficiary forms?

In some cases, naming a beneficiary for bank accounts and retirement plans makes these accounts “payable on death” to your beneficiaries. In other cases, you will need to fill out a “Payable on Death” form.

Do you have the right amount and type of life insurance?

When was the last time you assessed your life insurance coverage? Have you compared the life insurance benefit with your financial obligations?

Have you taken steps to manage your federal estate tax?

If you and your spouse have more than $5.49 million in assets (for 2017), you may want to consider taking steps to manage federal estate tax, which will be due at the second spouse’s death.

Have you taken steps to protect your business?

Do you have a succession plan? If you own a business with others, you may also want to consider a buyout agreement.

Have you created a letter of instruction?

A letter of instruction is a non-legal document that outlines your wishes. A strong, well-written letter may save your heirs time, effort, and expense as they administer your estate.

Will your heirs be able to locate your critical documents?

Your heirs will need access to the specific documents you have created to manage your estate. These documents may include:

Your will
Trust documents
Life insurance policies
Deeds to any real estate, and certificates for stocks, bonds, annuities
Information on your bank accounts, mutual funds, and safe deposit boxes
Information on your retirement plans, 401(k) accounts, or IRAs
Information on any debts you have: credit cards, mortgages and loans, utilities, and unpaid taxes

Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

Estate Taxes and Overall Federal Revenues

Estate taxes typically account for less than one percent of total federal revenue.

Chart Source: Center on Budget and Policy Priorities, 2015

Critical Estate Documents

Financial Documents

Healthcare Documents