Do you have a will? Does it accurately reflect all your distribution wishes?

 Does your will distribute all your personal property appropriately?

Are you comfortable with the executor(s) and trustee(s) you have selected?

Have you executed a health care power of attorney (or proxy) to appoint someone to make support decisions in the event of a catastrophic illness, disability or an accident?

Have you executed a Living Will (health care directive) to indicate a desire not to continue life in a permanent vegetative state?

 Have you considered a Living Trust to avoid probate expenses and delays?

If you have a Living Trust, have you titled your assets in the name of the trust, which is required to make the trust fully effective?

 

THE NEXT STEP - PROTECTING YOUR FAMILY

Does your will name a guardian for your children if both you and your spouse are deceased? Is a successor guardian named?

Do you have guardian financial relief provisions, if appropriate?

If you want to limit your spouse’s flexibility over the inheritance, such as to make distributions to a subsequent spouse, have you created a QTIP trust in your will or living trust?

If you have children from a prior marriage, have you included provisions disallowing a surviving spouse from disinheriting them?

Are you sure you have the right amount and type of life insurance for both survivor income, loan repayment, capital needs and all anticipated estate settlement expenses?

Have you considered an irrevocable life insurance trust to exclude the insurance proceeds from being taxed as part of your estate?

If you have an irrevocable trust, does it contain provisions that enable the trustee to make loans to you, such as from substantial cash accumulations?

Have you considered creating trusts for family gift giving?

Do your trust agreements contain Protector and Financial Advisor clauses, or the ability to fire trustees or amend the trust if needed?

 

THEN - REDUCING YOUR TAXES

If you are married, do your estate arrangements take full advantage of the marital deduction?

Are both your estate plan and your spouse’s plan designed to take advantage of each of your Unified Credit (indexed) exemptions? ($1MM in 2002-2003)

Do you and your spouse each own sufficient assets or insurance in each name to take full advantage of each exemption?

Are you making gifts to family members that take advantage of the $11,000 annual gift tax exclusion? (Indexed for inflation)

Have you taken advantage of tuition and medical expense gift exclusions?

If gifts are being made to trusts, are all the "Crummey" letters being distributed annually – to avoid estate throwback?

Have you gifted assets with a strong probability of future appreciation in order to maximize future estate tax savings?

Do your trusts include Dynasty provisions? Have the Generation Skipping provisions been adequately employed in your trusts to avoid tax on your children?

Have you considered charitable trusts that could provide you with estate and income tax benefits as well as asset protection?

If charitably minded, have you considered naming charities as beneficiaries of qualified retirement plan accounts, since unlike your children, a charity would avoid both income and estate taxes?

 

PROTECTING YOUR BUSINESS

If you own a business, do you have a management succession plan?

Does the business have disability salary continuation plans in place?

Do you have a buy/sell agreement for your family business interests?

Have you considered a gift program that involves your family-owned business, especially in light of recent changes in the estate freeze rules?

 

RESPONDING TO CHANGES

Are you certain that your estate plan is up-to-date and takes into account all your personal wishes and employs all potential tax-savings strategies?

Does your Power of Attorney allow the attorney-in-fact to make gifts to spouse, children or irrevocable trusts on your behalf, or to continue charitable pledges?

Does your Power of Attorney agreement allow the attorney-in-fact to:

1.   Amend your Will?
2.   To disclaim an inheritance or refuse a gift?
3.    To fund a living trust?
4.    To appoint a guardian or conservator?
5.    To exercise or disclaim a power of      appointment?

To allow for compensation for the attorney-in-fact?

Does your trust funding formula take into account the increasing lifetime gift/estate tax exemption ? Does it take into account the increasing Generation Skipping Transfer tax exemption ?

Does your trust have the option to convert to a supplemental needs trust for any beneficiaries that may need to qualify for government assistance?

Does your trust allow the trustee to withhold distributions to children in cases such as substance abuse, gambling, cult membership or just plain being an unemployed deadbeat?

Does your trust protect the funds of beneficiaries from their divorce?