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2 . Have a living will: Many people today are drawing up living wills. These provide medical and health care instructions to be carried out should you be on a life support system. A power of attorney must be named in conjunction with a living will.
3 . Review beneficiaries: As your family situation changes over the course of your lifetime, you may need to change the names of ben- eficiaries, not only in your will but in life insurance policies and other documents that list beneficiaries.
4 . Child guardianship: If you have minor children, it is essential that you take time and special consideration when deciding who will take guardianship of your children in the event that you die. This should be stipulated in your will.
5 . Trusts: Setting up a trust isn’t essential, but you may want to con- sider doing so to maintain greater control over your assets and have your wishes carried out once you die. Trusts will also avoid the lengthy probate process. There are a variety of trusts available.
6 . Logistics: There’s no question that it’s an emotional time when someone passes away. Difficulties can be compounded when the loved ones of the deceased can’t find important documents, keys to safety deposit boxes, financial statements and other necessary information. It is essential to create a list of where all-important information is located and give the list to someone you trust.
7 . Gifting: While it’s not essential, gifting is a means of giving up to $13,000 (in 2013) away tax-free to each person you choose. This is a way of shrinking a large estate to avoid significant estate taxes.
8 . Estate taxes: There are various ways to limit the taxes on your estate depending on the size of the estate and your family situation. It is worthwhile to discuss the options with your accountant or attorney.
9 . The Federal Estate Tax is finally permanent . Now all, but the largest estates, can be passed to heirs tax-free. The higher 2013 tax rate won't make any difference to the 99.9% who are exempt from this tax.
Estate Planning 5