| Dear Friend: It is critical to review
your estate plan annually because
laws and your situation often change. If
your current advisor did not ask you
these questions, let’s meet to be
sure your plan is not defective. If you
remain with your current advisor,
BE SURE you go through this checklist
together and have the advisor INITIAL
each item for your file. That way, your
beneficiaries cannot say you failed to be
thorough. Questions suggesting a review
of your plan include:
1. Does every adult
in your family have a will, power of
attorney and patient advocate agreement
for health care? Is a copy of
the patient advocate agreement on file
with your doctor?
2. Are all assets
in the name of your trust, or at a
minimum, a payable on death account?
Do you have a recorded deed showing all
your real estate in the name of your
trust? I suggest that you have a
current informational title policy in
your file to guarantee just that. Do you
know that holding assets in joint
ownership may subject survivors to
unnecessary capital gains tax, claims
of creditors, and improper distribution?
If you and/or your spouse rely only on a
will to distribute your property, your
estate will be probated!
3. If you have a trust and minor
children, should the guardian and
trustee be the same person? Are special
needs children or spend-thrift
beneficiaries properly addressed?
4. Should you
change the age or the manner in which a
beneficiary receives a distribution
(installments, income only vs. lump sum)
in order to protect the inheritance?
5. Do you want
to add or remove someone named in your
documents (guardian, trustee,
beneficiary) due to relocation, death,
remarriage, divorce, or birth? Or, add a
grandchildren’s trust?
6. To avoid probate, have you properly
listed your assets and changed the
beneficiary [or in many cases alternate
beneficiary] of your insurance,
annuities, IRAs, and pension benefits
to your revocable living trust? Recent
IRS changes on IRA beneficiary
designations may affect your estate
planning strategy. Educational trust
rules have also changed for children and
grandchildren. Should your spouse, trust
or charity be the beneficiary of your
IRA?
7. Does the
value of your estate (face amount of life
insurance, equity in home, IRA/qualified
plan, investments) exceed $2,000,000? If
so, there may be a big tax to your
beneficiaries. Do you know how
close your taxable income is to the lower
tax bracket? Proper planning can save you
substantial money on your tax bill!
8. Did you fund
the maximum contribution [at least $4,000
or more in certain plans up to 25% of
income] this year to your IRA, Roth IRA,
SEP IRA or College 529? If not, you
missed out!
9. Have you
recently reviewed current tax strategies
(gifts, education trust funding, family
partnership, charitable giving) to make
sure that any estate tax (rates to 55%)
is minimized or eliminated? Have you
shared with your spouse all estate
planning documents? This is critical.
Have you performed a life insurance audit
every five years?
10. If you own
a business, do have a buy-sell
agreement? This protects you and your
family in the event you or your co-owner
dies, is disabled or retires. Have you
created a corporation to protect your
assets and provide certain other key
person benefits? Are the stock
certificates in the name of the trust?
Placing certain assets in a separate
entity insulates you from liability.
11. Do you
want to pay taxes on your IRA now at 15%
and have your beneficiaries get the asset
tax free? Otherwise, your beneficiaries
might pay taxes on your IRA at a higher
rate.
It is
important to schedule an appointment to
review your situation. There is no charge
for the initial meeting.
MIADVOCATE.COM
CHARLES
KLEINBROOK, P.C.
Attorney and Counselor at Law
2817 S. Milford Rd. Suite 101
Highland, MI 48357
(248) 352-9569
Email: MrChip1234@aol.com
"Helping
Some of Michigan's Wealthiest Families Protect and Grow
Their Estate Since 1990"
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