For whatever reason, procrastinating working on an estate plan is an all too common ailment. But regardless of the reason, if you have not already started, finished, or if necessary, revised your estate plan to deal with changing circumstances, the new year is an excellent time to do so. Your loved ones will be grateful to you.

Here are a few basic steps:

1. Inventory your assets. What types of property—real estate, cars, and other assets—do you own? How much are they worth? You will ultimately simplify your executor's job if you leave sufficiently detailed instructions about the location of your assets—bank accounts, stock certificates, safe-deposit boxes, insurance policies, and other types of property—as well as the location of your personal records, tax returns, bank statements, and other documents.
   
   
2. Decide how you wish to distribute your property. Do you have a child who might need more financial assistance than his or her siblings because of health or economic reasons? Would you like to leave your stamp collection to your dear friend who has always enjoyed it? Would you like to make a gift to us because you believe in our mission and would like to see it continue?
   
   
3. Seek financial and legal counsel to find the planning vehicles that meet your objectives. An accountant and/or an attorney, especially one trained in estate planning, can help guide you through the planning process. For example, most estates, particularly those in excess of $500,000, suffer from a severe shortage of cash. The need for cash arises in the first stages of the estate-settlement process. Funeral and burial expenses must be paid. Attorneys' and appraisers' fees are incurred, and debts and taxes must be paid. Professionals can give you advice on how to address such issues to your financial advantage.
   
   
4. Once you have defined the most effective plan, you need to have the necessary legal instruments prepared. For example, do you have a valid will? Most people don't. A will allows you to control who gets what. It allows you to make gifts to the people and charitable organizations, such as ours, that you care about. If you don't have a will, you hand the disposition of those assets over to the state, which will distribute them according to inflexible formulas and probably not to your liking.
   
   
5. Once you have prepared the will, make sure that your executor knows where it is. Generally, the original will should be placed either in an attorney's vault or in a bank's vault, if the bank is acting as an executor. The will may also be placed in a safe-deposit box, but some states restrict the access to such boxes, causing delays for your executor.
   
   
6. You should review your estate plan from time to time. Changing circumstances—the birth of a child or grandchild, the death of a spouse, remarriage or relocation—will likely require revision of your original plans.
   
   

Through the years, many individuals have found estate gifts to be an excellent method of benefiting their favorite charitable organizations, like us. In addition to personal satisfaction, such gifts offer a major planning opportunity to minimize federal and possibly state death taxes and to reduce the need for liquidity.

We'd be happy to help you in any way that we can. Contact us for more information on estate planning.

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