Having a
will drawn up is just the beginning of effective estate planning.
Here are some other steps you should take to protect your family:
Step 1: Keep
your will up to date by reviewing it at least once a year. You
may need to make changes to reflect such events as births, deaths,
and new property acquisitions, and to take advantage of changes
in the tax law. (An up-to-date personal financial statement can
be very helpful in estate planning.)
Step 2: Inform
your spouse about your business and investment assets. You don't
have to discuss all the details, but your spouse should at least
have a working knowledge of your pension or profit-sharing plan,
your securities and investment goals, and your insurance policies.
You should also acquaint your spouse with a trusted adviser or
associate that he or she can turn to for help, especially in regard
to your business.
Step 3: With
the aid of your financial advisor, prepare a list of your major
assets and documents along with their locations. (Make sure that
your family knows where this list can be found.) The list might
include, in addition to your tangible assets, an itemization of
your securities, insurance policies, credit cards, safe deposit
boxes, and important papers (such as your will, marriage license,
titles to your home and automobiles, military discharge papers,
etc.). In addition, include (as appropriate) the names and addresses
of your accountant, attorney, banker, insurance broker, real estate
broker, and stockbroker or your Wealth Care Professional.
Step 4: With
the aid of your Wealth Care Professional, prepare what is referred
to as a "last letter of instruction" or "post-mortem
letter" to your spouse or other close relative. The letter
should include the names of people to contact upon your death,
spell out funeral arrangements and so forth. It could include
the list discussed under Step 3; if not, it should remind the
reader of the list (and of its location).
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