personal property checklist form estate planning

#Personal property checklist form estate planning professional#

If your client has more debt than assets, it’s also possible that their beneficiaries won’t get anything. The beneficiaries receive whatever remains at the end of that repayment process. As long as they’re legitimate debt, like medical bills, hospital bills, credit card bills, they don’t go away just because you die.ĭepending on what assets they own, the client’s named executor or trustee will have to gather information about what debts are outstanding at death and deal with it at that time. The client should make a note of all outstanding debt on their balance sheet.ĭebts are always going to be the responsibility of the estate. If your client owns any debt, that debt will transfer to their estate. Such large transactions will need careful planning so your clients avoid any IRS risks and maintain their financial independence. Our expectation is that clients will want to leverage the higher exemption levels prior to Januand therefore, it’s a good idea to look for opportunities to make gifts now.

Sell assets for promissory notes (with may be forgiven if the tax laws are less likely to change).

Gift a significant portion of the estate to beneficiaries.

Individuals with more than $12.92 million and couples with more than $25.84 million can reduce possible tax liabilities on their estates by doing the following before the end of the year: However, the current exemption levels are expected to automatically expire on Januresulting in the exemption levels reverting back to $5 million per person (adjusted for inflation). In recent years, your more well-off clients enjoyed favorable federal gift and estate tax exemptions.

Anticipated inheritance, gifts, and lawsuit judgments: If your client has inherited money or received a financial windfall, help them avoid possible tax penalties by planning what to do with it now (see below).

Business interests: Your client will need an attorney to help them determine which business assets they hold (and can place in a trust) and which assets belong to the business structure.

Promissory notes: If your client has loaned money to a family member with a written promise of repayment, it’s crucial that they include the amount in their estate.

Insurance: Term, whole life, split-dollar, group life, and annuity.

Investments: General investment account, mutual funds, ETF, stocks (equities), bonds, money market, and Treasury bills.

Retirement accounts: General pension, 401(k), 403(b), IRA, Simple IRA, SEP IRA, Roth IRA, HSA, and ESA.

Vehicles: Automobiles, boats, motorcycles, and aircraft.

But this blind spot could lead to identity theft and unnecessary taxation.

Digital assets: Many estates overlook digital assets such as airline miles, credit card reward points, cryptocurrencies, and log-in credentials.

Bank accounts: Checking, savings, certificate of deposit, and money market accounts.

Real property: Any land, building, or residence that your client owns or has a mortgage on.

Let’s take a look at what your client should include in their balance sheet:

#Personal property checklist form estate planning professional#

Help your client by determining which assets are easier to estimate based on current market value, and which assets, like private business interests, may need an independent professional appraisal. Things intended for a payout later, like retirement accounts, and life insurance.Things that your clients own a title to directly, like their house, vehicles, bank, and investment accounts.The estate planning personal balance sheetīefore diving into the official estate planning documents, make sure your client has a complete list of their assets and estimates of each asset’s value.ĭina Nam says to think of assets in two different ways: It will also dispel common assumptions and misperceptions financial advisors have when it comes to estate documents. Our checklist will help you understand why each estate planning element is essential and what to consider as you and your clients plan for 2023. We’ll give you clear insights into a difficult topic: what your clients need to have in place in the event of their death or incapacitation. That’s why we’ve created this easy-to-follow estate planning checklist. As their financial advisor, you’re in the best position to keep your clients on task so they can reach their goals and ensure their families are taken care of.īut between a myriad of documents, individual state requirements, and shifting federal estate tax laws, it’s no wonder the estate planning process can be overwhelming for financial advisors and their clients.

If something should happen to your clients, regardless of their age or income, it’s crucial that they have a plan for their financial assets. Print Share Estate Planning Checklist: Everything your clients’ documents should cover, according to our legal expert