Your Spring Cleaning Estate Planning Checklist

Spring is a great time for a fresh start, so as we begin the second quarter of 2021, let’s take the time to throw away unnecessary paper and clutter.  Here’s some guidance on what to keep and what to throw away from an estate planning perspective.  Contact us today to update your important documents.

• Estate Planning Documents – Review your estate planning documents for necessary updates (check current appointments and beneficiaries in your will, POA, trust, and medical directives). If you own a business, make sure that any business succession planning documents are included. If you have a trust, make sure that your trust is funded.  Shred any outdated estate planning documents.  Confirm you know the location of the original documents, and if they are in a bank safe deposit box, make sure someone other than you is authorized to access it.  Scan a copy and keep it in your computer or an external hard drive.  If you had me create your estate plan, rest assured that I keep an e-copy of all executed documents as a courtesy to my clients.
• Business Documents – Keep a copy of articles of incorporation, bylaws, operating agreements and partnership agreements. Think about the end-game for your business, and if you have not done so already, create a business succession plan for your business interests and assets. If you need help with this, call me.
• Tax Records – Keep income tax returns and backup documentation for at least three years after filing, including contributions to nontaxable traditional IRAs, gift tax returns, and corporate tax returns.
• Real Estate Records – Keep a copy of deeds, lease agreements, promissory notes, and insurance documents. Throw away documents related to paid off mortgages and liens.
• Asset Information – For any assets subject to capital gains or losses, such as your home or investments, keep cost data until the asset is sold and the income or estate tax return reporting the sale is no longer subject to audit.
• Bank Accounts and Credit Cards – Keep your most recent bank account statements, credit card statements, and safe deposit box inventory and location. Keep a copy of any pay on death beneficiary designations and check that they are correct.
• Investment Accounts – Keep your most recent brokerage, mutual fund, and IRA statements. Discard any statements older than one year.  Keep savings bonds in a safe deposit box or fireproof safe.  Keep a copy of any transfer on death beneficiary designations and check that they are correct.
• Loan Documents – Keep the Promissory Note, Mortgage or Security Agreement and the last annual statement until the loan is paid off or the mortgage is released. If the loan is from a family member, keep the amortization schedule and a record of payments made. 
• Vehicles – Keep records of purchase, registration, title and lien for as long as you own the vehicle. Throw out records for cars you no longer own.
• Warranties – Keep them as long as the warranty is in effect.
• Health Care – Keep your personal and family medical history, authorization for release of health info (HIPAA), health care surrogate designation, and living will in a separate folder from your other estate planning documents.