A Family-Friendly Checklist to Plan Your Final Affairs
Four years ago, I wrote the blog Estate Planning: Final Instructions, and as I said at the time, “The Elephant in the Room” (rarely or awkwardly talked about) was “How to Prepare Your Family for the End” – sharing your final wishes and necessary financial, legal, and estate information.
Our guest author for this month, Charlie Baker from the law office of Travis R. Walker, recaps a more detailed listing of the needs to make your end-of-life transition as smooth and stress-free as possible for your heirs. Although you won’t be around to hear them thank you for this advance planning, no matter how busy you are right now (or how uncomfortable thinking about this eventual “final passage”), don’t put it off! PKF
Here is the summary the essential categories of TO-DOs:
Estate planning doesn’t have to be a grim affair. This 25-step checklist will make it easier for your family to settle your affairs after your passing. Even if you already have a will or trust in place, there may be additional steps you can take to give your family the peace of mind they need in the days after your death.
Assemble Necessary Information
[ ] 1. Itemize Inventory
Before you write out your will, take note of the material things you own. These may include:
Property
Physical investments
Precious belongings like jewelry or art
Expensive at-home equipment
It’s in your best interest to create an inventory of your belongings in an electronic spreadsheet, but you can also work with your family members to create a physical copy.
Make sure you share the finished copy of your inventory with your executor.
[ ] 2. Itemize Non-Physical Assets
You can also create a separate inventory detailing your intangible investments, including your:
Once again, share this document with your executor. You can also keep an additional physical copy with your tax returns and any documents regarding your insurance policies.
[ ] 3. Assemble Insurance Policies
Regarding your insurance policies, print out all information relevant to your life insurance, home/renters insurance, car insurance, and related coverage. It’s in your best interest to keep this information in a fire-safe or at a bank.
Your executor can receive instructions on accessing these documents if they don’t already have copies on hand.
[ ] 4. Note List of Debts
There’s a chance you’ll leave behind debts upon your passing. These can range from credit card debts to essential mortgage debts to unanticipated medical expenses.
You can work with trusted family members to take account of these debts. Your family can then address those expenses as painlessly and simply as possible.
[ ] 5. Make a Membership List
If you’re a member of an organization that offers life insurance benefits at no additional cost to you or your loved ones, note those institutions among your documents. Your loved ones may have the right to collect additional benefits after passing.
[ ] 6. Gather Titles and Deeds of Properties
While creating an inventory of your belongings, ensure that you produce any related proprietorial documents and include them in your estate planning kit. These documents can include vehicle titles and deeds of property.
You may want to retitle any relevant properties if you have a trust in place, so that said property falls under the trust’s protection at the time of your death.
[ ] 7. Gather Proof of Identity Documents
You can also find the original copies of your social security card, birth certificate, marriage certificate, divorce certificate, and any discharge papers. Consider making copies of relevant documents and storing them in a fire-safe or bank box.
Again, make sure your executor knows how to access these documents or comes into possession of relevant copies.
[ ] 8. List Digital Logins and Passwords
In this increasingly digital age, your death may see you leave behind a litany of online accounts. With this in mind, list your social media accounts, financial accounts, email addresses, and passwords. You could also invest in terabyte storage blocks so you can make copies of any pictures or relevant documents you may have stored on your computer(s).
Manage and Review Finances
[ ] 9. Consolidate Your Finances
If possible, ensure you can transfer your finances to a single bank or create a paper trail that your loved ones can later follow to consolidate your finances. You want to make it easy for your executor to distribute your applicable finances upon your passing.
[ ] 10. Review Retirement Account Beneficiaries
The beneficiaries you name in your retirement account will receive the benefits before anyone noted in your will. Make sure you’ve named the appropriate beneficiaries and add those parties you want to be protected. You can also remove certain parties from your retirement account after you first establish that account.
[ ] 11. Review Insurance Beneficiaries
Similarly, double-check your insurance beneficiaries and take the time to add any parties you want to benefit from your chosen protections.
[ ] 12. Prepare for Estate Tax Obligations
While you may not have the opportunity to get ahead of your loved ones’ tax obligations, you can work with a personal executor to prepare your loved ones for your state’s specific estate and inheritance taxes. You can also note any federal laws that might impact your loved ones’ inheritances.
[ ] 13. Take Advantage of College Funding Accounts
If you want to create a college fund for any children or grandchildren, you can establish a 529 account during estate planning. Establishing a 529 account comes with tax advantages you can discuss with an accountant or an estate planning attorney, depending on your circumstances.
Decide on Your Plan
[ ] 14. Talk with an Estate Attorney
Between the emotional stress and the sheer number of documents you need to establish a postmortem action plan, you may find you need a hand planning your estate. You can work with an estate attorney to gather the necessary documents and establish the appropriate support nets for your family.
[ ] 15. Choose an Executor or Administrator of Your Estate
Most estate planning attorneys prompt you to elect a personal estate executor when you first draft your will. If you have not elected this individual at this point, you must do so.
Your executor should be someone you trust to be responsible with your loved one’s feelings and your estate. Choosing an executor who is financially stable and mentally fit is also advisable.
[ ] 16. Assign Transfer on Death Designation
When you take the time to assign a transfer of your accounts upon the designation of your death — provided you can do so — you can prevent your loved ones from waiting through a lengthy probate process to take control of your assets.
You can work with an aide to connect with the relevant institutions and ensure your accounts are handled correctly. You have the right to ease the transference of your IRAs, retirement funds, 401ks, and insurance policies in addition to your bank accounts.
[ ] 17. Select Guardians for Children and Pets
Most people don’t forget to declare a guardian for their children in the event of their death. If there’s a specific party you want to watch over your loved ones — including your pets — you need to declare as such in your will.
You can connect with an estate planning attorney if you need to modify an existing will to account for a new family member or pet under your guardianship.
Complete Important Documents
[ ] 18. Last Will and Testament
Your last will and testament identifies your executor, giving them your instructions regarding how you want your property to be distributed. This document must be witnessed and notarized, ensuring you were of sound mind when you distributed control over your estate.
[ ] 19. Living Trust
You can use a living trust to distribute a portion of your estate to a specific designee. Living trusts come with explicit instructions about how portions of your estate should be distributed upon your passing.
You can choose to create either a revocable or irrevocable trust.
You retain control over a revocable trust until your death.
An irrevocable trust technically owns itself and thus places less of a taxable burden upon its recipient.
[ ] 20. Living Will
A living will specifies your desired actions in the event that you can no longer make medical decisions for yourself. You can also use a living will to issue “do not resuscitate” orders.
[ ] 21. Power of Attorney
The power of attorney title determines who wields control over your estate and affairs if you can no longer do so due to your death or a severe injury.
[ ] 22. Statement of Wishes
You can include a statement of wishes along with your will, but it’s not an essential document. Instead, it’s a statement of wishes outlining what you would like your loved ones to do upon your passing regarding your funeral arrangements and additional postmortem care. You can also use a statement of wishes to elaborate on decisions made in your will.
Updating and Managing Your Estate
[ ] 23. Store Documents in a Safe and Accessible Place
You must store your postmortem documents in a location safe from environmental harm and foul play. It’s best to store multiple copies of essential documents in a fire-safe or bank box.
[ ] 24. Make Copies of Your Documents
Having multiple copies of your postmortem documents is always a good idea. You can create physical copies of your estate plans to divide among the relevant parties. You can also make digital copies of these documents to store in the Cloud or on a personal storage drive.
If necessary, you can request that your executor distribute access to these documents to the relevant parties upon your death.
[ ] 25. Reassess Your Plan
There is always a chance your plans for the future may change after you’ve assembled your estate planning documents. With that in mind, make sure you revisit your documents after significant life changes, such as marriage, divorce, and the birth of a child.
You can also revisit your plan if the person you named as your executor or a beneficiary passes away. An estate planning attorney can help you rework your plan upon your request.
Visit this website for the Law Offices of Travis R. Walker based in Florida.
The Elephant in the Room: How to Prepare Your Family for “The End”
Expanded from the October 3, 2019 article in PMEA Retired Member Network eNEWS.
Few people want to talk about it… what co-authors Shoshana Berger and BJ Miller discuss in their book, A Beginner’s Guide to the End: Practical Advice for Living Life and Facing Death:
Passwords for phone, computer, email, and social media accounts
Instructions for your funeral and final disposition
An ethical will*
Letters to loved ones
* Where a legal will transfers assets, an ethical will transfers immaterial things: your life lessons and values. For a discussion on the latter, seek out the book Ethical Wills: Putting Your Values on Paper by Dr. Barry Baines.
Berger and Miller also recommended to purchase and set-up an online password manager to safeguard your data and share the master password with someone you trust. (For more info on password management software, read my “tech rant” blog here.)
With greater detail, we also learn from https://www.wealthmanagement.com/news/final-letter-instructions-family-important the importance of leaving a “final letter of instructions” to your loved ones. The website reports what Neuberger Berman Trust Company advises should be archived in a document to be read after your death.
The location of all estate planning documents, such as wills and trust agreements
A list of relevant advisors with contact information
List of other people to contact on your death
Location of any safe deposit boxes, inventory list, location of keys, who is authorized to open
List of life insurance policies, location and beneficiaries
List of bank accounts and how they are titled
Investment and trust account information
A description of other assets
Any debts or other liabilities
Listing of all credit card accounts
Inventory of other important documents like deeds and titles, and where they are held
Location of keys to all residences
Description of any pension benefits and who to contact
Instructions concerning funeral or memorial services
They add that this document should be held by your attorney, spouse, and adult children.
What would you say to those nearest and dearest to you if you couldn’t (or didn’t) tell them in person? Consider writing individual letters to your partner, children, or other family members “as a way of leaving a few last words.” Check out Frish Brandt’s inspiring website, “Last[ing] Letters.”
A Lasting Letter is a letter written to someone you care about, someone who you wish to hear your voice and read your words long into the future. Sometimes referred to as a ‘legacy letter,’ this letter holds the words that carry one’s voice forward in time.
The letter can take many forms: long or short, a memento of a moment or a history of a lifetime, a connection made or missed, an instruction or a confession, a love letter, and everything in between.
Each letter is unique: each voice, each intention is individual.
[Portions reprinted from the state journal of the Pennsylvania Music Educators Association, PMEA News, Spring 2019 issue – All rights reserved.]
Is It TIME to Retire?
This is a personal question that no one but YOU can answer… not even your PMEA Retired Member Coordinator! By the time you read this article in the Spring edition of PMEA News, this choice may be uppermost in your mind, especially if you are within a couple years of that so-called “retirement age.” Most school districts require advance notification of an employee’s plan to retire in order to retain full benefits and exit bonuses, and to allow planning for the job replacement search and screening process. (Check your teacher’s contract!)
In music educator conference sessions, director meetings at festivals, and printed in PMEA News and the online e-publication Retired Member Network eNEWS, much has been discussed about the “what,” “how,” and most recently, “where” of retirement, even issues of “privacy” regarding your decision. For a review of these areas and a bibliography of resources, please visit:
The “why” of retirement is also relevant. There may be a lot of influences for someone to consider leaving their full-time career:
Boredom or lack of stimulation in the current job
Changing employment status or responsibilities
Health problems (yours or other members of your family)
Spouse retiring
Your or family member’s desire to relocate
Needs for caregiving (grandchildren, parents, or elderly family members)
Travel opportunities
Acceptance of a new position or the start or expansion of an “encore career” (higher education, music industry, travel/tour planning, or another field)
Other involuntary or more negative motivations may “encourage” you to resign your position:
Music and/or staff are eliminated from the curriculum or building in which you teach.
You are experiencing a decline in music program enrollment or participation.
You feel unappreciated, unsupported, devalued, or ignored as a professional.
You conclude you must retire early to avoid losing existing contractual benefits.
However, the most important reflection on WHEN to retire should begin with the question, “Are you ready for retirement?” and…
Do You Have What It Takes for a Happy Retirement?
A successful retirement is not “all about the money.” Certainly, you are well-advised to make an appointment with an estate planner, elder attorney, and/or financial advisor (probably all three). Bring a copy of your bank and investment statements, annual reports on your pension, social security, annuities, and insurance documents. Make sure you have the “big picture” of your net worth and accomplish the following (https://www.fisherinvestments.com/en-us):
Determine your goals, objectives and time horizon;
Make key distinctions between income and cash flow;
Develop a basic plan to help achieve your retirement goals.
However, probably even more important, experts say there are many other requirements that foster preparedness to enjoying your post-full-time employment years. For example, proposed by the editorial team of the NewRetirement website, there are eight essential keys to a potential retiree’s “happy transition.” (Read the entire article for a greater perspective at https://www.newretirement.com/retirement/8-skills-you-need-for-best-retirement/.)
A Knack for Dealing with Uncertainty
Resilience: Can You Overcome Adversity?
Capability to Maintain a Set of Friends
Cash Flow Mastery
Ability to Set Your Own Schedule and Stay Motivated
Can You Relax?
Capacity to Have a Purpose and Follow Passions
Do You Know How to Manage an Overall Retirement Plan?
These concepts are supported by the book Happy Retirement: The Psychology of Reinvention by Kenneth S. Shultz (DK Publishing, 2015) which focuses on the question, “Are you psychologically prepared to retire?”
How important is your job when it comes to getting a sense of life satisfaction?
How many non-work activities do you have that give you a sense of purpose?
How do you imagine your life to be once you stop working?
How do you think retirement will affect your relationship with family and friends?
How much energy for work do you have these days?
Being “psyched” for the “big day” also involves learning personal coping skills, modeling these characteristics of good mental health (from the book The Psychology of Retirement: Coping with the Transition from Work by Derek Milne, 2013):
Being able to use your talents and energy productively
Enjoying challenges and gaining pleasure from accomplishing tasks
Being capable of sustaining a meaningful love relationship
Finding meaning in belonging and contributing to your community
Being responsive, sensitive, and empathic to other people’s needs and feelings
Appreciating and responding to humor
Coming to terms with painful experiences from the past
Being comfortable and at ease in social situations;
Being energetic and outgoing
Being conscientious and responsible.
Should I or Shouldn’t I Go Now?
No, this won’t be an easy decision… but, you knew that, right? There seems to be a plethora of free advice “out there” to help (?) you deliberate. (Well, you get what you pay for!) A few samples from the Internet:
Happy retirement = busy retirement. We keep going back to what PMEA MIOSM Chair Chuck Neidhardt said about venturing into retirement – also the perfect bumper-sticker: “Have a plan!” In almost every case study, retiring music teachers must “move on” to an equally engaging and active life style, finding new purpose and meaning in their “senior years!” Considering that many professionals are “addicted to achievement” and the sudden cessation from work may cause some emotional turmoil (Sydney Lagier in US News and World Report, July 20, 2010), we should study examples of those who have happily “Crossed the Rubicon” ahead of us into “retirement bliss.”
Leaving your school employment does not mean you won’t continue doing what you have always enjoyed… personal music (or dance or drama) making, performing in or conducting an ensemble, composing, accompanying, etc. The PMEA Retiree Resource Registry – the proverbial “directory of past leaders in PA music programs” – lists many retired members who continue to offer their talents and experience to help others in the profession. This is a good place to start for asking “advice from the experts” on just about any topic… perhaps even tips on deciding WHEN to retire: https://www.pmea.net/retired-members/.
How about a couple more “models and mentors” who made this “change of life” adjustment and explored new directions towards self-reinvention in retirement?
Ben Franklin, Founding Father
“Having worked as a successful shopkeeper with a keen eye for investments, Franklin had earned his leisure, but rather than cultivate the fine art of indolence, ‘retirement,’ he said, was ‘time for doing something useful.’ Hence, the many activities of Franklin’s retirement were: scientist, statesman, and sage, as well as one-man civic society for the city of Philadelphia. His post-employment accomplishments earned him the sobriquet of ‘The First American’ in his own lifetime, and yet, for succeeding generations, the endeavor that was considered his most ‘useful’ was the working life he left behind when he embarked on a life of leisure….”
2000 – “The Year of Retirement?” for two musical superstars Barbra Streisand, singer, songwriter, actress, and filmmaker Garth Brooks, country-music singer and songwriter
“In 2000, Barbra Streisand performed four farewell concerts to mark her retirement from performing live. At the time, she was 58 years old and wanted to focus more on acting, directing and recording albums, reported ABC News.”
“Her retirement ended in 2016 when she returned to the stage for her The Music… The Mem’ries… The Magic! tour, which grossed $53 million over 16 performances, according to Billboard.”
“Garth Brooks shocked fans in October 2000 when he announced his plan to retire to Oklahoma until the youngest of his three daughters graduated from high school, reported Billboard. The country music superstar was 42 years old when he began his early retirement.”
“During his semi-retirement, he did a few sold-out stints at arenas and a 186-show Las Vegas residency with wife Trisha Yearwood, according to Billboard, but he largely stayed out of the spotlight. Brooks returned to touring in September 2014 and continued until December 2017, performing a total of 390 shows, reported Billboard. Forbes cited his 2017 earnings as $60 million. Together, Brooks and Yearwood are one of the richest celebrity couples.”
“If money can buy you happiness,” supposedly these ten athletes were financially more successful after retirement, as opposed to the total earnings they generated during their original sports careers:
Agatha Christie, British writer
Finally, to answer the question, “What would Agatha Christie do in retirement?” best-selling author Ernie Zelinski quoted in his The Retirement Cafe website the following list of activities proposed to be “her favorite things” from the publication Agatha Christie: An Autobiography (Dodd, Mead & Co., 1977).
Sunshine
Apples
Almost any kind of music
Railway trains
Numerical puzzles and anything to do with numbers
Going to the sea
Bathing and swimming
Silence
Sleeping
Dreaming
Eating
The smell of coffee
Lilies of the valley
Most dogs
Going to the theatre
Ernie concluded, “This list of activities and things that Christie loved may trigger some of the stuff that turns you on and which you can use for an active retirement. This will go a long way towards conquering retirement boredom.”
Is the time ripe for you to retire? Again, only YOU can answer that!
When it becomes the right moment for you to make that “big plunge” to “living your dreams…” KUDOS and BEST WISHES on your rebirth as you explore your own pursuit of retirement self-reinvention and post-employment “freedom!”
been discussed about the “what,” “how,” and most recently, “where” of retirement, even issues of “privacy” regarding your decision. For a review of these areas and a bibliography of resources, please visit:
paulfox.blog 