The Digital Estate Plan

October 17 - 23 is National Estate Planning Awareness Week

2011-10-18T08:59:00.000-07:00

Organization is a critical part of estate planning

By Executor's Resource, Inc.

In September 2008, Congress enacted HR 1499 which set aside the third full week in October each year as National Estate Planning Awareness Week. This year it is observed from October 17 – 23.

Whether you have a proper estate plan or not, inventorying your important information -- legal, financial, digital and personal -- is a critical part of estate planning. All too often, families struggle after a loved one passes to simply locate the details and papers needed to settle the estate and honor their loved one's wishes. Don't let this happen to your family.

Here are 5 easy, inexpensive things that you can do to have a better organized estate and legacy.

1) Use our estate organization checklist to identify what you have, where it's located, and who to contact.

2) Review the beneficiary designations on your major insurance policies and financial accounts. Is the person currently named in line with your wishes? If yes, great. If no, you have some updates to do.

3) Gather a listing of your computer and online accounts -- emails, blogs, paypal, etc. Inventory login credentials so your loved ones will be able to have future access.

4) Check the paperwork for your safe deposit box. Is your future executor/personal representative formally named as someone who can have access? If not, they may run into issues. At a bare minimum, make sure this person knows where the key is.

5) Have "the talk" with your future executor or personal representative. Your wishes are best made known by having a frank conversation with those you love.

Our EstateLogic subscribers love that they can do all of this and more online in their own private, secure vault. We encourage you to check it out - we bet that you'll feel the same.

Estate Tax Alert: State of Oregon

2011-10-11T08:34:00.000-07:00

Attention Oregon residents or any non-resident who owns property in the state of Oregon. Change is on the way! We encourage you to contact an estate attorney to get your estate plan reviewed in light of the anticipated changes.

On January 1, 2012, the Oregon's current inheritance tax will change in several ways. According to About.com's Wills & Estate Planning expert Julie Garber, three primary changes will occur:

1) The name of the tax will change from "inheritance" tax to "estate" tax. This brings Oregon's law in line with the majority of the states and the federal government which define an estate tax as one that applies to the entire value of the estate versus a tax that is applicable only to select beneficiaries of an estate.

2) The second change is in how the exemption amount of $1,000,000 (amount to remain the same) is applied. Presently, once an estate's value exceeds $1,000,000, the entire value is taxed. Post 1/1/2012, the tax will only apply to the amount of the estate that exceeds $1,000,000.

3) New rates will be in effect after 1/1/2012, the net result being that estates valued between $1,000,000 and $2,000,000 will experience a decrease versus current day rates, and those valued over $2,000,000 will experience an increase.

Ms. Garber provides a link to a table outlining the new rates here as well as an updated version of state estate tax and exemption chart. If you are uncertain about the laws that govern in your state of residence (or in a state where you own property), it's worth a read now to be fully informed.

Remember, the changes occurring in Oregon from the federal estate tax. For a quick review of the 2010 changes to the body of law that governs the federal estate and inheritance taxes click here.

Part 1 -- Access to Digital Assets: An Important Aspect of Every Estate Plan

2011-08-24T14:11:00.000-07:00

By Executor’s Resource, Inc.

Remember when:

- Physical bills would go in the stack by the telephone to be paid at the end of the month?

- Local music stores were the only place to go for that favorite song played on the radio?

- You visited your local store to get that roll of film developed and had to wait a week before seeing if you captured a good shot?

Thanks to rapid technological advancements, what used to be commonplace is now a thing of the past. For many of us, the routine events described above have been rendered insignificant with the advancement of the Internet and everything it has to offer. Bills can be paid with the stroke of a few keys. Music can be purchased in a mouse-click. Photos from your smart phone or digital camera can be transferred to a digital account and shared with anyone who has an email address. What innovation!

We have all of these digital accounts that can make our lives easier and richer. But now the questions become: “How do I keep track of all of this?” and “What happens to all my stuff when I die?” To find the answer, we started with researching the question “Who owns my online stuff while I’m living?”

In this multi-part blog series, we’ll talk about ownership and transfer rights associated with bank accounts, music, email accounts, photos, and more, along with considerations for incorporating access to these important digital assets into your estate plan.

Bank Accounts

The Pew Internet & American Life Project recently revealed that 58% of Internet users engage in some form of online banking . Online banking is usually provided as a free service by banking institutions, and is used to easily transfer money, pay bills and keep an active eye on one’s accounts. However, when an online banking customer passes, certain steps need to be taken to make sure his or her accounts are handled appropriately.

According to Marcie Geffner at Bankrate.com, if a bank account isn’t held jointly or in a trust, this account becomes off limits to family or friends until the estate is settled in a court proceeding, If an individual’s family members try to use the account to pay bills or transfer money before his estate is legally settled, this is classified as forgery and fraud. Read Geffner’s full article here.

Music

It would be natural to think that, when you buy an album on iTunes, it’s yours to do as you please with it. This is the case for CDs, LPs, and books. Once finished with a CD or book, common law allows you to give it away or resell it. However, this is NOT the case for digital music. You cannot buy from iTunes without digitally accepting a user agreement which removes your legal right to “…redistribute, transmit, assign, sell, broadcast, rent, share, lend, modify, adapt, edit, license or otherwise transfer” your digital content. So basically, when you die, your music is supposed to be extinguished with you. For more information on this subject, please read some great research that Business Insider contributor Connor McKnight has done here.

In our next posting, we'll continue our coverage on digital assets and talk about key estate planning considerations. In the interim, we'd like to hear from you -- are your "digital assets" currently a part of your estate plan? What provisions do you have in place so that your family can access the information they need?

Skip Rapp, CEO featured on Money Matters Radio

2011-06-14T14:25:00.000-07:00

Just recently, our CEO, Skip Rapp had the chance to talk to Chuck and Joe Utter on Money Matters Radio. Chuck and Joe are principals at Oxford Financial Designs, Inc., a registered investment advisory firm in Westminster, CO. They had over 38 years of combined experience in financial planning, and were very interested to learn about Executor's Resource and its flagship product EstateLogic. We've provided a question and answer format to the conversation Skip and Chuck had, complete with audio snippets of the talk show. Enjoy!

Chuck: When and how did Executor’s Resource get started?
Skip: Like so many high-tech / software companies, usually the idea comes when somebody encounters a problem and there has to be a better way. Our Founder Myra Salzer is a renowned financial advisor. About 10 years ago, she found herself being the executor of her Dad’s estate and figured, “This is going to be a piece of cake.” About a year into the process she found it to be a lot more complicated than she thought it was. This is the genesis of how the company got started.

Chuck: The word “executor” is often misinterpreted. Can you explain what an executor, or personal representative, does?
Skip: A recent study on a group of baby boomers revealed that only 5% could accurately describe what an executor does. A large percentage of those listening to the show today will be appointed an executor.

An executor is what I like to call “The CEO of your afterlife.” It’s the person who takes charge of all the things that you’ve got and arranges for what happens to them after you’re gone. Being an executor can take up to a year and a half, and is a daunting task.

Chuck: Who typically performs the role of personal representative (or executor) and does it tend to be a difficult job?
Skip: Yes, it can be a very time consuming job. In about 90% of cases, the personal representative or executor is a close family member or friend: someone we love and trust. Because it’s such an important role, we assign it to someone who we know we really can trust. In most cases they’re not prepared for this and for many people it ends up being a train wreck.

Chuck: So how can we make it easier for the personal representative?
Skip: The core issue really is finding the stuff. Think about all the things you accumulate over the course of your life, whether it be assets or estate documents or your own personal legacy, which in many ways is the most important thing that we pass on.

Up to 80% of the cost of settling an estate is simply finding the stuff. This can take a long time and very often there are a lot of assets that are never found

Chuck: Some people are telling us that they think wills are the be all and end all of estate planning, what would you say about that?
Skip: Well, it certainly isn’t enough. We are much much more than the sum of our assets. It’s the personal legacy, family stories, history and messages that we want to pass on to successive generations. For very many families, regardless of wealth, these are the most important things that are passed on. These are very often more important than the assets.

Chuck: We’re hearing a lot about a concept called “digital assets” or “digital afterlife.” Things like our email accounts, blogs, online social network accounts. What happens to our online life after we die?
Skip: Today a lot of individuals have their financial assets online in digital accounts. That makes it a difficult issue to find these accounts if there are no physical records of them. Around $2 billion of assets are not claimed each year because people simply can’t find them.

For other accounts like email, Google and Facebook, you need to check with each of these companies about who owns this data after they pass away. They are changing their policies as we speak to account for this issue. This points to the need for organization and trying to take care of those issues up front so you don’t put a huge burden on those you love.

Chuck: So how can Executor’s Resource play into this [digital afterlife]?
Skip: Executor’s Resource has created EstateLogic that allows you to get your arms around all the stuff you’ve got: what you have, where it’s located and who to contact. The service helps walk you through this process. It’s a great gift you can give to your executor by taking a huge amount of strain off their backs and giving them a great deal of piece of mind. There is a depository for estate documents, a place for assets, a place for family legacy and also instructions. It’s a very robust repository that’s easy to use and supported by financial guidance and education.

Chuck: So I’ve got all my important documents in a drawer at home, why would I need EstateLogic?
Skip: First of all, having those documents in a drawer at home is a good start. But the fact is it’s very unlikely that any of us, given all the things we’ve accumulated over life, can get all those things in a drawer including videos and audio recordings, photographs and other legacy things that we want to pass on to other generations. In many cases your executor might be living in another state. If they were living somewhere else they would be able to access this information online.

Chuck: Can you be more specific about how the information is kept safe?
Skip: The data goes directly from the customer into our data hosting service in Denver. These data hosting services support banks and are very secure. The key is that you have a security viewpoint from the very beginning. We hired a software security to walk with us step by step from the very beginning of the development of the software ensuring that the very best protocols are in place.

Chuck: How much does EstateLogic cost and how do people pay for it?
Skip: It’s relatively inexpensive. You can purchase EstateLogic by the month with a credit card for under $5.00. You can go to EstateLogic.com and purchase it. It’s also available through a number of financial advisors at a discount, and locally through Colorado’s Bellco Credit Union.

So how can listeners find out more?
They can go online to www.estatelogic.com. We have a 2 minute video you can watch, or you can call our customer service team at:
866-645-6051 ext 3
or locally at
303-444-5149 ext 3.

Being Curious About George

2011-05-26T14:19:00.000-07:00

In April 2011, Executor’s Resource welcomed George Deriso as its new Chief Operating Officer. George’s previous experience includes senior positions at Apple, AT&T and Gartner, Inc., and we love the new insight he gives to our culture and our product.

Over the past month we have had the opportunity to get to know George, and he shared a story with us that we have the honor of publishing right here as part of our blog. We are thrilled to be sharing it with you all. Enjoy!

Why I Joined Executor’s Resource

by George Deriso

“Twenty-five years ago this December my maternal grandmother died. I spent time with her while she was in the hospital, and shared many stories and fond memories with my siblings and parents while we anxiously waited in the hospital visitor's room, hungry for good news that never materialized.

My mother was the second of three children, bookended by her older brother and younger sister. Through the years my own siblings and I were growing up, my mother went to great lengths to take us frequently to visit my grandmother. We loved her beautiful San Francisco home; situated next to a park and built in 1940, it was an ideal place for kids to run around and explore.

She was a lover of antiques and artwork and had a magnificent collection of silver serving dishes and utensils that she brought out for festive meals at Thanksgiving and Christmas. And she was an exceptional cook. Needless to say, when she died she took a big part of my childhood with her.

She was prepared, though. She had an up-to-date will and had already appointed an executor for her estate: my mother's younger sister.

Whether through intention or misdirection, my aunt was not able to organize and execute my grandmother's considerable estate. Bank accounts were drained, CDs cashed out, expensive cars sold or put to use by my aunt's immediate family - all to the frustration and growing anger of my mother and her brother. They, in effect, were left out of the settlement of the estate.

After several months, my mother sued my aunt for the executorship and won the suit. When she took over the estate, it was all but decimated. It took many more months to sort out what had happened and organize what remained. The last items were distributed between my uncle and my mother and my grandmother's estate - after a few years of duress - finally was closed.

Neither my uncle nor my mother ever spoke to my aunt again, and all three have passed away. I lost touch with my cousins. Besides suffering the grief of my beloved grandmother's death, I had lost another large portion of the family I had grown up with.

With this memory as a backdrop, I fast forward to 2002. My mother was diagnosed with advanced COPD (late stage emphysema), a degenerative disease with no cure. She appointed me as her executor: a dubious honor in my mind.

The only experience I had with executorship was the destruction of my grandmother's estate and the resulting acrimony that tore our family apart. I used this as a benchmark for what not to do and set about learning what I was required to do as an executor.

With the help of my siblings, I spent the next four years:

- videotaping and cataloging my mother's belongings

- journaling and recording family stories and anecdotes

- putting powers of attorney in place

- creating healthcare directives and living trusts

- gathering mementos, artifacts, contact lists, organ donor details and much more.

More importantly, I made it a point to phone my mother weekly and bring my wife and children to visit frequently.

When my mother died in March of 2006, the grief we all felt was heavy. I set about my duties as her executor. The time we had spent organizing her estate previous to her death immediately paid off. The conversations we all had settling her estate only took one month. My siblings were cooperative and supportive - no acrimony. Instead of focusing on matters of the material estate, we could focus on the stories of our long past together - something I know for certain my mother would have wanted.

The differences between my grandmother's estate settlement and my mother's were fueled by organization and communication. On the surface, these are two functions performed very well by EstateLogic®, the flagship product developed by Executor's Resource.

But the product does so much more. It becomes the medium for creating your life's story and sharing it in a deeply meaningful way both while you are alive and later when you are not. The people behind Executor's Resource are extraordinary in that they believe that you are your estate. For us, it's not just the tangible artifacts that represent you, but your stories as told in voice, video, words and photos.

So my decision was simple: to work with a group of people who care more for who you are than what you are, investing my passion in a product that can dramatically reduce the time it takes to settle your estate while ensuring that your specific wishes are met as you intend them to be - without acrimony and without unrecoverable cost.”

Bellco Credit Union Offers EstateLogic® to Help Members Meet Their Critical Estate Organizing Needs

2011-05-03T10:38:00.000-07:00

On May 2, 2011 Executor's Resource cordially welcomed Bellco Credit Union and its members to the EstateLogic® community. A comprehensive online organizer, EstateLogic helps people catalog and store not only important documents and details -- wills, tax returns, birth certificates, website passwords -- but also personal legacy information such as photo albums, social media accounts, heirlooms, diaries, videos and more, all in a safe and secure online repository that it is easy to access when loved ones need it.

EstateLogic is one of a number of partner resources available to Bellco members via the credit union's website at Bellco.org providing a one-stop resource for a broad range of financial planning needs. To access EstateLogic, members pay a low monthly fee, discounted for Bellco members.

You can get more information here.

On behalf of everyone at Executor's Resource, WELCOME Bellco Credit Union!

5 Must Read Estate Planning Tweets for March 2011

2011-03-29T08:56:00.000-07:00

If you aren't on Twitter, you've been missing out on some terrific estate and legacy related content. Here's our list of the top 5 must read Tweets for March 2011:

1) Smart planning for every estate: what you need to know in 2011 and 2012: http://bit.ly/fYE5jI

2) I can't take it with me" great Time Magazine article: http://ti.me/gBI6ca http://fb.me/xeHGOHcI

3) "Kids Financial Lessons - What kids should know about money at 9, 13, 18 and 23" - Great article http://fb.me/XvIDgdlG

4) You're single. Do you need an estate plan? http://bit.ly/i9hUxn

5) Be careful about naming beneficiaries when minor children are involved: http://bit.ly/hnGB0g

Special Update: Don’t Forget State Estate Taxes

2011-03-18T10:40:00.000-07:00

As a special note, this data was compiled as of February 8, 2011, and is informational only and not intended as legal advice. Further changes, particularly at the state level, could occur. Any comments on our information or new developments that should be reflected may be sent to Info@ExecutorsResource.com.

In our last post, we presented discussed the changes made last year to the federal estate tax system. Even if your situation falls outside of the federal estate tax system for 2011 and 2012, be aware that you still may be subject to state estate taxes if you own assets in the following states.

The following chart compares 2010 state estate tax exemptions by state to their exemption levels in 2011.

Importantly, the state estate tax may apply even though you’re not a resident of that state. If you have real or personal property in any of the above states, you could potentially be facing a tax.

Another key consideration for planning is whether you live in a state that currently collects an inheritance tax (e.g., Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). An inheritance tax is different from an estate tax in that it is applied to the portion of assets received from an estate by individuals. An estate tax is applied to the amount of the entire estate before it is distributed. While spouses are exempt from inheritance taxes, they apply to domestic partners and other non-spouse recipients and can range from 1% to 20% of the amounts received depending upon applicable state law.

Conclusion
Even as we write this article, both federal estate taxes and state estate taxes are meeting opposition. The death tax, as it’s called, has always been and continues to be a controversial subject. To date, the U.S. House of Representatives has introduced five bills to repeal federal estate taxes, and there are likely more proposals to come.

We Want to Hear From You
Do you live in a state that has its own separate estate tax? How has it impacted your planning?

Smart Planning For Every Estate: What You Need to Know in 2011 and 2012

2011-03-01T11:09:00.000-08:00

By Executor's Resource, Inc.

2010 was a big year for the estate tax, both at the federal and state levels. Here’s what you need to know about the changes that will affect planning in 2011 and 2012, and retroactively impact the estates of those who died in 2010.

As a special note, this data was compiled as of February 8, 2011, and is informational only and not intended as legal advice. Further changes, particularly at the state level, could occur. Any comments on our information or new developments that should be reflected may be sent to Info@ExecutorsResource.com.

On December 17th, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act. It extends the sunset provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), but only through December 31, 2012.

There are several key aspects of the law that apply to the federal estate tax. Some are retroactive back to January 1, 2010, meaning that they apply to the estates of those individuals who died in 2010.

To Be Applied Retroactively from January 1, 2010 through December 31, 2012 (with the option to elect out of the estate tax in 2010):

$5 million personal exemption

 For persons who die in 2010, 2011 and 2012, and have a taxable estate of less than $5 million, there is no applicable federal estate tax.

 For deaths in 2010, 2011 and 2012, with a taxable estate of more than $5 million, a 35% federal estate tax will be applied to the portion of the taxable estate that exceeds $5 million.

This compares with a $3.5 million exemption and a 45% top rate in 2009. As a reminder, EGTRRA gradually increased the federal estate tax exemption in stages from 2002 through 2009, and eliminated the estate tax for 2010, until this recent law passed.

Overall estate tax liability is determined by taking the gross estate, subtracting any debts, expenses, deductions or charitable transfers to calculate the taxable estate, and applying the estate tax rate to the portion of the taxable estate that exceeds $5 million.

Here’s an example:

John Sample, a single person, passed away on January 16, 2011. His gross estate is worth $7 million, and his debts, expenses, deductions and charitable transfers are $1 million, making his taxable estate $6 million. Thanks to the new law, his estate tax can be calculated as follows (although under the Internal Revenue Code the mechanics are different):

$6 million taxable estate - $5 million estate tax exemption = $1 million estate subject to tax

John’s estate has to pay a 35% federal estate tax, so money owed would be:

$1 million x 35% = $350,000

To Be Applied from January 1, 2011 through December 31, 2012:

Portability Provision for Married Couples

 For 2011 and 2012, if one spouse dies and the estate is settled without using up the $5 million personal exemption, the unused portion of the exemption may be transferred to the surviving spouse.

 This provision must be elected by the executor or personal representative of the estate of the first spouse that dies.

 Remember, married couples also get an estate tax deduction for any assets transferred upon death to a surviving spouse. This is the “unlimited marital deduction”. During the years 2011 and 2012, assets transferred to the surviving spouse do not reduce the exemption amount available to the surviving spouse under the “portability” provisions.

Let’s look at an example of how this portability provision for married couples can work:

Samuel Hypothetical passed away on February 1, 2011. His gross estate is worth $3 million, his wife Mary is the executor of his estate, and all of his assets pass to Mary. The attorney who is assisting Mary in settling Samuel’s estate advises her to elect to add Samuel’s unused personal exemption of $5 million to her own exemption. If Mary dies in 2011 or 2012, the total amount of personal exemption available to Mary’s estate would be a generous $10 million.

There are some additional complications if the surviving spouse remarries, which is why it is important to work closely with a professional to ensure that your plans are structured in an appropriate way.

Still a Moving Target, but Estate Planning is NOT Just About Taxes

The provisions of the recent law passed are only temporary. If Congress fails to act before December 31, 2012 the federal estate tax will revert back to 2001/2002 levels (i.e., $1 million exemption, 60% maximum tax rate1) with no portability provision. While this can make planning a challenge, keep in mind that estate planning isn’t just about taxes. It’s about ensuring that your instructions and wishes can be identified and honored.

Conclusion

The death tax, as it’s called, has always been and continues to be a controversial subject. To date, the U.S. House of Representatives has introduced five bills to repeal federal estate taxes, and there are likely more proposals to come.

So what does all this change mean to the average person? Now, more than ever, is the right time to update or create your estate plan. It’s the smartest way to be prepared for change. Here’s our list of 4 must-do action items:

1) Get organized. Now, more than ever, it is essential to inventory what you have, where it’s located, and who to contact so that you have a better understanding of what changes will impact you. It only takes a little work initially, and on an ongoing basis to keep up-to-date. You’ll see the value of having everything important at your fingertips, and so will your future executor. You can check out how our EstateLogic program can help you here.

2) Get your legal documents in place. If you don’t have the necessary legal documents (e.g., will, power of attorney, etc.), don’t wait. While it’s true that these legal documents identify how you want your assets distributed at your death, they also capture your wishes and instructions on a host of other, likely more important things. For example, who should be appointed guardian of your minor children, who should make health care decisions in the event you are incapacitated, etc.

3) If you have a plan, update it. If you haven’t looked at your will, trust agreements, or powers of attorney documents in more than two years, don’t wait. Life changes and so too should your legal documents. Now is the perfect time to review your documents to ensure that your current wishes and instructions are still reflected.

4) Check your beneficiary designations and how your assets are titled. Still have your former spouse as the beneficiary of your 401(k) plan? Did you buy your car 5 years ago when you were single and subsequently get married? Many people falsely believe that estate planning legal documents such as a will or trust agreement will override out-of-date beneficiary designations and title paperwork. Don’t make this mistake. Check your beneficiary designations and how your assets are titled annually.

We want to hear from you

Let us know what you think of the new federal estate tax. How will the new law impact your estate planning efforts?

1 The nominal tax rate is 55%. There is an additional surtax for estates over $10 million, making the total maximum tax rate 60%.

Top 5 Must-Read Estate Planning Tweets for January/February 2011

2011-02-09T10:58:00.000-08:00

If you're not on Twitter, you're missing out on some great educational tips and discussions related to estate planning and settlement. Some of what we consider to be the most recent must-read Tweets include:

1. @CraigslistDad

"self-imposed #estate #planning week continues" 10 Steps to Creating Your 1st Estate Plans http://wp.me/p1cagu-et

2. @AlerStallings
Top Five #Estate Planning Tools for Same-Sex Partners: http://ow.ly/3RKBj

3. @HWEstate
Out of the box estate questions part four: parents http://ow.ly/3RVrH

4. @AlerStallings
Some important #estate planning considerations for the beneficiary with special needs: http://ow.ly/3RKva
#columbus

5. @AlerStallings
Ask The Experts: What to do when a #trust goes missing – http://ow.ly/3OeBV
(via @AARP) #estate #columbus

Planning for Your Digital Afterlife

2011-01-17T16:02:00.000-08:00

What happens to your digital assets -
email, Twitter, Facebook, blog, and
other online accounts -
when you die?

Your email account. Facebook. Twitter. Blog. Online photos. PayPal.

If you're like most of America's population, you're online...a lot.

Do you have a password to access your Laptop? iPhone? BlackBerry? iPad?

Do you bank online? Have you elected to "go paperless" for your mortgage, auto insurance or other financial accounts?

So what happens to all of these "digital assets" when you die? The short answer for now may very well be nothing unless you plan a way in advance for your executor or personal representative to identify them and gain access.

From National Public Radio (NPR) to the Washington Post, to the New York Times, there's been a lot of publicity lately about the importance of protecting your digital assets. We at Executor's Resource applaud those who are bringing this topic into a mainstream discussion forum. The chaos that ensues when a loved one passes has gone under the radar screen for too long.

Since 2008, we've been providing a valuable service to those who subscribe to EstateLogic®:

We help create an inventory of all of life's important information, both physical and digital
We store it for safekeeping and continued access in a state-of-the-art data center, and
We facilitate the transfer of this information to the loved one who'll be settling the estate.

In this day of online bill paying, going paperless, and social media, your executor or personal representative (typically a close family member or friend) will need a place to start. We are proud to be in the business that we're in - helping people capture their wishes for all they hold dear.

If you haven't already, take a brief tour of our service and give it a try. We'd love to know what you think.

Giving Legacy for the Holidays - Part 2

2010-12-14T10:31:00.000-08:00

Recording Holiday Traditions

1. Bring a small voice recorder to your next family holiday gathering.

2. Spend 5 minutes in a quiet spot with each attendee.
3. Ask "What holiday tradition is your favorite and why?"
4. Have each attendee begin his or her portion of the recording by stating his or her name and age.
5. Aggregate all the responses by documenting them in a photo book or via digital recording.
6. Give a copy to each attendee after the New Year.

Remember, this need not be formal or perfect. Capturing the spirit of the moment along with the voices of your loved ones will be a treasured gift that will grow in value over time.

5 Great Thanksgiving Tweets

2010-11-24T08:51:00.000-08:00

Here's a fun and relevant way to get the Thanksgiving holiday underway. Check out these 5 great tweets about Thanksgiving and the holidays in general.

1. @alphaconsumer: 10 Money Smart Ways to Give Thanks This Season http://bit.ly/gosogl

2. @washingtonpost: This is what happens when our readers get creative with Photoshop and pictures of a pardoned turkey: http://wapo.st/iaFXSa

3. @SmartSpending The Black Friday survival checklist. (Staying home isn't on there.) http://cot.ag/h2mw0O ^KD

4. @CenturaHealth: 2morrow is Thxgiving! Take a Halftime for your Heart & start a new tradition –an after dinner walk for #StrongColoHearts: http://ow.ly/3dCDH

5. @fpassociation: The Best Holiday Card Ever… an Ethical Will: http://wp.me/pDBFz-nf

From all of us at Executor's Resource, Happy Thanksgiving!

Giving Legacy for the Holidays

2010-11-18T11:27:00.000-08:00

5 ideas for sharing a bit of you

1. Trace your family tree and give copies to your family members.

2. Create a family cook book of favorite recipes.

3. Get out old family photos and design a coffee table style picture book. Identify who is in each picture and provide captions and descriptions.

4. Write a short letter to your loved ones about why they make your life special.

5. Give a new, blank journal to each family member for use in 2011.

Do you have other ideas for capturing and sharing your legacy? Let us know by commenting here.

Today's Caregiver - Tomorrow's CEO of the Afterlife

2010-11-04T11:57:00.000-07:00

Caring for an aging parent is emotional, time intensive, and uncertain. You want to make choices that best align with your parent’s wishes while keeping peace in the family. Often times, that means providing your parent’s important information at a moment’s notice.

Adult children who are caregivers today are likely to be executors in the future. Unfortunately, some accept the role without even understanding what the word "executor" means. When someone dies, an executor (personal representative in some states) is identified either through a will or court appointment. As “CEO of the afterlife”, it is the executor’s responsibility to manage virtually all aspects of the estate settlement process.

Duties of an executor or personal representative typically include:

Security and care of the family, including attending to immediate financial needs
Assistance in funeral and/or cremation arrangements and organ donation, if applicable
Interpreting the will and trust agreements, or presiding intestate laws
Identifying, collecting and protecting your loved one's assets
Determining which assets must be probated, and which can be transferred directly to the named beneficiaries
Managing any existing real estate, businesses (e.g., physical or online), and investments until the estate is settled
Notifying your loved one's creditors and settling their claims
Filing all applicable federal and state tax returns, both for the estate and your loved one
Paying your loved one's taxes and other expenses
Distributing the remaining assets to beneficiaries according to the terms of the will, or state law (if intestate), or trust agreements.
Providing a complete and accurate accounting of all financial transactions

Serving as an executor is often a daunting and time-consuming task, even for sophisticated individuals. This is especially true when the estate is spread across different states, and beneficiaries are scattered across the country.

Now for the good news. As a caregiver, you may already have a lot of your parent’s important information. At Executor's Resource, we designed EstateLogic® to be the caregiver’s tool to manage today’s information and tomorrow’s transition. We invite you to let EstateLogic be your guide in:

Making important information more accessible
Capturing the right information

Caregivers and their loved ones use EstateLogic collaboratively to gather and store financial, legal and personal information all in one safe, secure online location. Whether you live next door or across the country, you’ll have access whenever you need it, making your role as caregiver today and executor tomorrow easier. We stand ready to help.

We'd like to hear from you. Are you a caregiver today who will be a future executor? Are you a current executor who previously served as caregiver? Share your story with us here.

It's National Estate Planning Awareness Week

2010-10-20T08:50:00.000-07:00

In September of 2008, HR1499 was adopted, setting aside the third week in October of each year as National Estate Planning Awareness Week.

While it seems logical that we should want to get our ducks in order to protect our family and loved ones, all of us have a different reaction when it comes to talking about “The Big Inevitable”. Here are 8 reasons why people put off the conversation:

#1. Talking about death is unsettling.
Of course it is, but you can actually get peace of mind today by planning ahead. We recently wrote about what separates good estate plans from those that are great.

#2. The kids just want my money!
Maybe, or maybe not. Did you know that who you are beyond your finances -- your legacy -- the ethics, personal history, life advice and important stories -- is also an important component of your estate? Try approaching the conversation with your adult children from the non-financial or administrative side. Our quiz for future executors can help.

#3. Shh! Money talk is supposed to be secret
Your information is power. Without access to it, your executor -- typically the family member who'll have to settle your estate -- will have to reconstruct all of the details of your life. Why not make it easier for them? Knowing what you have, where associated paperwork is located and who to contact is essential. While you're at it, why not provide this person an overview of the responsibilities they'll have when the time comes? Our posting on an executor's responsibilities can help.

#4. Estate planning is for “rich” people
Do you own a vehicle? How about life insurance? Do you have a bank account? Congratulations -- you've got an estate!

#5. It's too hard because my family isn't "normal"
Dysfunctional may very well be the new normal. Don't let complex family situations intimidate you. In fact, planning done right today can help your family steer clear of troubled waters in the future. If you work with a financial advisor, ask him or her for help. Here are 10 questions to get you started.

#6 It’s 9 p.m. – do you know where your assets are?
Do you remember the old phrase “It’s 9 p.m. – do you know where your kids are?” This is a twist on that – only to say that some feel overwhelmed by trying to identify all of their assets, liabilities, personal items of importance and even digital assets (e.g., email accounts, social media accounts, personal photo websites). Try our easy-to-use checklist and set your own pace.

#7 I don’t know what I’m doing – I’m afraid I’ll make a mistake

This reason tends to be the common source of paralysis in moving forward. Fortunately, there is a wide variety of resources and experts available to provide the help you need. You can start by reviewing our tips on how to find an estate attorney.

#8 Queen of “denial”
There of those of us who just can’t believe that one day, our time will be up. If this is you, may we recommend that you make some incremental progress by starting with the legacy aspects of your estate? Collect your favorite personal stories, assemble old photos or family videos, inventory the personal items that are important to you today. We're betting you'll warm up to wanting to protect these mementos by ensuring they stay within your family.

So come on, join the conversation. Do you feel confident that you have things squared away? If not, why not? Tell us your reasons for putting off your planning for The Big Inevitable.

5 Great Estate Planning Tweets

2010-10-04T11:18:00.000-07:00

Do you follow @EstateLogic on Twitter? If you don't, you may be missing out. Twitter is a great way to be in the know on current information when it comes to estate and legacy related topics. Here are 5 estate planning Tweets we think are worthy of further mention.

1. @RitaAtNCLife -- 6 Common needs for Life Insurance -- Do you have people who depend on you? – http://ow.ly/2wXWX

2. @EstateLogic -- 70% of widows leave their financial advisors after their husbands' death. Advisors, gr8 article: http://bit.ly/dtKf2b

3. @EstateLogic -- Know what your worth and who owns what: http://bit.ly/c2vqOO
4. @BlackLewisLaw -- Why #Estate #Planning Is Important For Women http://ht.ly/2IkHH

5. @feeonlyindy -- Testing Software to Write Wills on the Home Computer - http://nyti.ms/95yAen

Are You Prepared? A Quiz for Future Executors

2010-07-29T08:43:00.000-07:00

By Executor's Resource, Inc.

Have you been an executor? If you haven't, chances are you will be.

The majority of Americans typically choose a close family member or friend for the role. Most of us accept without thinking about what it really means. Will you be up for the job when the time comes? Take this quick quiz to find out:

1. As the future executor for your loved one, do you know where to find the following:

      a. Final instructions (i.e., funeral arrangements and preferences)
      b. Will or trust agreement, and other legal documents (e.g., powers of attorney)
      c. A key to residence(s) and the passcode to the home alarm system
      d. Insurance policies, banking accounts and other assets and liabilities
      e. A listing of digital assets - passwords for computers and online accounts
      f. Valuables and collectibles
      g. Family photo albums and other important personal and heritage information
      h. Safe deposit box key(s)
      i. Contact information for the estate attorney who drafted the will
      j. Contact information for other professionals (e.g., financial advisor, insurance agents)

2. Are you aware of any hidden items of importance in the home or elsewhere?

3. Do you talk with your loved one about this information at least once a year or when there are updates?

If you answered yes to many of the questions, serving as executor, personal representative or trustee should be easier for you. If you marked "no" more times than "yes", it's time for you to have the talk with your loved one. We'll address how you go about doing that in our next posting.

In the interim, tells us how you fared on this quiz by submitting a comment.

Top 5 Estate Planning Tweets for June 2010

2010-06-29T13:38:00.000-07:00

By Executor's Resource, Inc.

In case you missed the action in June, here’s a listing of the Top 5 Estate Planning tweets (from our perspective) for June 2010:

1. @Jack65203 Banks are offering comprehensive care to their clients as a way to deepen ties with their clients. Via @wsj http://ht.ly/2452s #estate planning

2. @EstateLogic From good to great: your #estate #plan. http://bit.ly/azpqpO

3. @BlackLewisLaw 5 #Property Types that Cannot Be Left in a #Will http://ht.ly/22LPo #estateplanning #estate #planning

4. @trustlawgroup RT @lichtermanlaw Cost of raising a child: $475,680 - this is why life insurance and proper estate planning is critical http://ow.ly/1WqGg

5. @FAmagazine Financial Advisors Spending More Time On Clients' Kids: Advisors are dedicating more time to the spending and savi... http://bit.ly/cszh5N

Take your estate plan from good to great

2010-06-25T13:10:00.000-07:00

By Executor's Resource, Inc.

Many people seem to think that having an estate plan simply refers to having legal documents. While it’s absolutely true that the right legal documents are critically important, we believe that there are four components overall that when addressed, can take an estate plan from good to great and make it a true gift to your loved ones:

1) The power to carry out your wishes. Appropriate, up-to-date (e.g., reviewed every two years and modified as needed) legal documents for your situation including:

Last Will and Testament
Living Will
Healthcare Power of Attorney
Financial Power of Attorney
Trusts, for some individuals (If you are interested in determining whether a trust is right for you, contact your estate attorney to discuss your goals and options.)

2) The legend to your life's details. A well-organized catalogue of all of your important personal information (e.g., documents, financial assets, online accounts, personal items of importance) and instructions for your executor, personal representative or trustee to access upon your incapacity or after your death.

3) You’re more than your money. Documenting your legacy – all the important personal stories, accomplishments, and heritage information that you want passed to the next generation. Some studies show that this component is often more important to many people than financial assets.

4) Talk. Listen. Repeat. Some people may find this step to be the most difficult of all. However, the true measure of a plan is in how well it can be implemented. Periodic and ongoing communication to tell your executor, personal representative or trustee about your preferences, viewpoints and wishes is critical in smoothing the often troubled waters of settlement.

We want to hear from you.

How does your estate plan stack up in light of these four components?

Leave a comment and let's get the dialogue started.

Why have an estate plan?

2010-06-14T08:28:00.000-07:00

By Executor's Resource, Inc.

A recent study showed that in today's economy, more and more people see estate planning as "discretionary" - something that can be put off until times are better. Unfortunately, disaster doesn't know the difference between a bullish or bearish stock market, or an employed versus unemployed person. Simply put, the benefits of having a current, up-to-date estate plan far outweigh what happens if you don’t.

Let's start with addressing what an estate plan does. An estate plan helps to see that your loved ones are provided for after your death in accordance with your preferences and instructions. People create estate plans for a variety of reasons.

Some people have a strong desire to avoid probate. Remember, probate is simply the legal process whereby a court appointed person – typically a close family member or friend, but sometimes an attorney or other professional – identifies all of your assets and liabilities and their value, pays your final bills, and distributes what’s left your assets to your heirs according to law.

In Colorado where Executor's Resource is headquartered, it’s actually quite a simple process. In some other states it can be a little more complex.

If you want to know what strategies will help you better manage probate, a qualified estate planning attorney can assist you. This could include making sure your beneficiary designations on your financial accounts and insurance policies are completed properly to even considering various types of trusts. For more information, read our prior posting called Probate 411.

Some people create an estate plan to make sure that their assets will be transferred in a tax efficient manner. This year, there is no federal estate tax; however, unless Congress acts, next year the federal estate tax will apply for estates with over $1 million in assets.

Historically, only a small percentage of the population has paid federal estate tax, but this will be something for us all to keep our eye on. For those of you who own a house, have a 401(k) plan, modest insurance coverage and personal property, it may not be hard to surpass $1 million. As an important note, the residents of 15 or so states also may owe a state estate tax.

Others who may be worried about creditors or the privacy of their estate settlement might find value in having a trust. Again, you'll want to seek qualified legal assistance in creating an advanced technique like a trust.

Most importantly, an estate plan helps to ensure that your wishes and instructions are carried out in the manner you specify, that family harmony is maintained, and that your loved one's burden in settling your affairs is minimized in their time of grief.

Simply put, your death will be much easier on your family if you have a plan. In our next posting, we'll discuss the four components of a good estate plan.

Without a will, there’s no way

2010-06-11T08:40:00.000-07:00

By Executor's Resource, Inc.

Millions of Americans don’t have basic estate planning documents. A recent study showed that only 35% have a Last Will and Testament, and only 29% of us have financial or healthcare power of attorney documents. Some reasons offered by the study for not having these documents:

• 1 in 5 people (20%) thought that their assets would automatically transfer to their spouse or family

• Another almost 20% thought it was too expensive

• 11% didn’t believe it was necessary

• 9% thought it just took too much time.

If you die without a will

Each state has its own laws that govern what happens to your property and your dependents. If you own property in multiple states, both sets of laws will need to be followed, and they could be different. The legal term for this type of law is “intestacy laws”.

Generally, intestacy laws specify a ranking or order for which your assets will be distributed after you pass. A general rule of thumb in thinking about these laws and the ranking or order that typically exists is:

 Assets will transfer to your spouse first.

 If you don’t have a spouse, then your children are next in line.

 If you have no children, then your parents – if they are still alive -- receive your assets.

 If you have no living parents, then your brothers and/or sisters.

 If you were an only child or your siblings aren’t alive, then your nieces and nephews stand next in the order to receive assets.

How does this sound to you? Many people would probably agree that this order isn’t well-aligned with their actual intent. This not only applies to your financial assets but also to your precious items of personal importance.

Another major issue is applicable for those with minor children. If you and your spouse/partner pass at the same time and there is no will, the court will appoint a guardian. Most, if not all loving parents would agree that this would be a highly undesirable situation. This has an even greater impact for unmarried couples with minor children.

Bottom line
Bottom line? Without a will or appropriate legal documents, there’ll be no way to identify or honor your intentions.

For those of you out there who lack these basic documents, check out our posting on 7 ways to find an estate planning attorney, and what questions to ask to identify the right professional for you.

Get it together!
Starting to gather and organize all of your important documents and thinking through your preferences now can save you time and money in the estate planning process. Our EstateLogic® program helps you do just that. Watch our 2-minute video tour to see how we can help.

Finding the estate attorney that’s right for you

2010-06-07T12:54:00.000-07:00

The right due diligence goes a long way

By Executor's Resource, Inc.

In our last posting, we discussed the importance of interviewing a pool of estate attorney candidates prior to selecting a practitioner who is right for you. Holding interviews with estate attorney candidates prior to purchasing services is a natural and appropriate thing to do, and ought to result in a better experience – for both you and the practitioner.

After all, this is typically not an immaterial purchase. And it shouldn’t be a one-and-done experience. You’ll be relying on this professional over your lifetime to give you advice on how to best protect your family and the assets you have worked so hard to build. In addition, he or she will also likely be helping your family to settle your estate at some time in the future.

You’re buying experience and advice. Perhaps you’re permitting this practitioner to provide the discipline you need (via reminders and follow up) to make some tough decisions.

Bottom line – when things get intimate you’re going to need to feel comfortable.

All the more reason for you to select someone you like, trust and respect.

Let’s talk about what to say and what to ask.

Breaking the ice
Plan to start the conversation by letting the attorney know the goal of your meeting and your timeframe for selection. Some suggested language:

I’d like to create (or update) the estate planning legal documents that are appropriate for my situation.
I’ve identified several attorneys, including you, with whom I’m speaking in order to get a sense for how you work and what I might expect as a client should I retain your services.
My goal is to conclude my conversations within two weeks (personalize for your timeframe) and then select the attorney with whom I’d like to work.

Getting to the heart of the matter
Next open the conversation to the main areas of information gathering. Consider asking the following questions:

What is your background, education and experience? What drew you to the field of estate planning?
What are the major services you presently provide? Do you see that changing in the future? (For instance, the attorney may provide other services than estate planning, or might assist with legal documentation creation, but not with implementation – that is, probating the estate or some of the other activities that are potentially necessary during settlement.)
Are you a general estate planning practitioner or do you have an area of specialty or focus (e.g., trusts and more advanced estate planning issues, experience with special needs, elder care issues, experience with family businesses)?
Are you a sole practitioner or part of a larger firm? What support resources are available to assist you?
If there are junior attorneys or paralegals on your team, what is the division of labor? How is work delegated, and who would be my primary contact?
Do you have any preferences in how you do estate plans (e.g., simple wills versus trusts)?
Do you charge by the hour, for a package of legal documents, or some combination of the two? What are your fees, on average?
Do you have a sample package that I could review while I’m here in your office so I can get a sense for what the “end product” looks like?
What happens to my documents once they are created/updated? Do you keep a copy here at your office?
What is the process for periodic review and update of legal documents? Do you offer an ongoing maintenance program so that as my life changes I can update my documents? What are associated fees, on average?
Can you give me a preview of some common things that you’re telling clients right now, given the uncertainty in the estate tax environment?

Your candidates’ responses should give you very good insight into their operations, specialty areas if any, style and personality – and a sense for your likely experience as a client.

“Before you go” TIP
Most attorneys have websites where they provide a wealth of information about their practice, their approach on certain issues, and their education and experience, among other topics. They may even have a blog, Facebook or Twitter account where you can see some of their dynamic thinking in action. Plan to visit your candidates’ sites prior to meeting with them.

We want to hear from you
Have some stories you’d like to share with on why you like working with your estate attorney? Leave a comment here or follow us and share on Facebook at Executor’s Resource.

7 Ways to Find an Estate Attorney

2010-06-04T14:48:00.000-07:00

Congratulations. You've finally decided to set up an appointment with an estate attorney to get your basic package of legal documents created. Problem is, you don't know an estate attorney.

Here are some ideas that can help you identify a pool of candidates with whom to speak (unless you live in a small town with only one practicing estate attorney). I use the term "pool of candidates" because it's only natural that you want the right blend of personality, style, specialty area and experience to suit your needs. While this list is not exhaustive, it should allow you to identify a few names:

1) Speak with your financial advisor or accountant. They will often have network of professional connections and can provide you a referral.
2) Talk to your friends, relatives and other trusted parties. Ask for recommendations and references as to why they thought a particular estate attorney was good.
3) Review your employee benefits or speak with your HR representative. Pre-paid legal assistance plans are popping up in worksites all across the country. They may offer discounts.
4) Check with your bank. Your bank or credit union may have a relationship with an estate attorney, which again could translate into savings.
5) Review the benefits offered through your life insurance policy. Some forward-thinking insurance companies like MetLife have begun to make estate attorneys available to group policy holders at a discounted rate.
6) Visit your local Chamber of Commerce website.
7) Last, but not least, the obvious -- do an online search. You can do a Google search for estate attorneys in your city or visit an attorney referral site like Lawyers.com.

Once you identify a pool of 3 to 5 candidates, it'll be time to conduct some interviews. It is perfectly fine and acceptable to have a phone call or meet in person with the estate attorney with whom you're contemplating a relationship.

Why? Remember, the concept of one-and-done estate planning is old hat. Plan to be working with this professional over your lifetime to regularly review (every two years) and make relevant updates to your legal documents.

In our next posting, we'll address how to prepare for your interview and what questions to ask.

Probate 411

2010-06-02T07:44:00.000-07:00

In a prior posting, we provided a probate 411 of sorts. To continue along those lines, let’s define a couple terms you’ll need to know when contemplating probate:

Executor: This is the person, usually a family member, husband, wife or friend who gets stuck with all of the administrative work of settling an estate. It could involve processing paperwork involved with a 401(k) settlement, writing checks to real estate agents, attorneys, repairmen, and auctioneers, and it always involves a lot of communication. If there’s a will, the court typically appoints the executor named by the deceased. If a person dies without a will – or intestate – the court appoints an executor based on a priority list set forth by the legislature. States may call them something different. For example, they are called “personal representatives” in Colorado. Note that if a trust is involved, there is a "trustee" or several trustees. This is a different role than that of an executor or personal representative.

Assets: Your assets include any real estate that you own, as well as any personal property such as art, cars, an antique collection, stocks (in public or privately owned shares), bonds, business interests, retirement accounts and life insurance policies. Don't forget the digital assets like Pay Pal accounts or monetized blogs, websites, even your email, Facebook and Twitter accounts. Many people believe they have no “estate,” when in reality, they do.

Probate court: This is a division of your county’s court system, complete with clerk’s office, courtrooms, judges and all the record keeping functions.

So now that we have some basics down, let’s answer a few helpful questions.

What passes through probate and what doesn’t?

Assets that typically follow the path of probate include:

Any asset (financial like a brokerage or checking account or physical like a car or personal residence) that you, as an individual, own outright at the time of your death, and that does not have a beneficiary designation
Any assets like life insurance or a retirement account that you specified through a beneficiary designation should go to your estate after your death
Your share of a joint asset, usually in association with real estate or a home, titled in the form of “tenants in common”

To probate or not?
Some people arrange their property so that it completely bypasses probate, using a variety of techniques, such as signing forms on their bank and retirement accounts that cause money to go directly to beneficiaries (other than their estate); gifting assets before death and using revocable living trusts.

Others have all of their assets distributed via probate. To find out what avenue might work best for your personal situation, you might consider speaking with a financial planner who specializes in estate planning, or an estate attorney.

No probate = no taxes = MYTH!
A common myth is that if you can avoid probate, you can avoid taxation. This is not the case. Assets that are part of your probate estate, along with assets that pass outside of probate are considered part of your gross estate. Your gross estate is used to calculate any estate tax you may owe. The only way to completely avoid estate taxation on an asset is to simply not own it or any interest in it at the time of your death.

Even assets that pass to your beneficiaries outside of probate are subject to estate tax. If taxation is a driving force behind your probate concerns, it may be in your best interest to meet with an estate attorney or financial planner that specializes in estate planning to uncover and identify your goals for your estate and design strategies for how to best achieve them.

5 Must See Estate Planning Tweets

2010-05-26T12:58:00.000-07:00

In case you don't follow us on Twitter, here's a recap of what we consider to be the 5 "Must See" Tweets related to estate planning for the month of May 2010:

1) US citizens living #abroad need to closely watch the #estate #tax situation.Here's why: http://bit.ly/aanqSE

2) http://bit.ly/aaJ0Kr What you need to know - FDIC insurance and your #estate #plan.

3) Court issues landmark tax ruling on 'payable by death' accounts: http://bit.ly/ceZbiI

4) Moving to a new state? Plan to have your #estate plan reviewed: http://bit.ly/dklw5G

5) @ChicagoElderLaw Mother's Day Visit a Good Time to Safeguard Mom's #Assets: http://tinyurl.com/23wlkdl

Follow us (@EstateLogic) to be in the know on what's new with estate planning and settlement.

What is Probate?

2010-04-30T10:38:00.000-07:00

By Executor’s Resource, Inc.

For some reason, the word “probate,” usually used with the term “court,” strikes fear and loathing in the hearts of most of us who are over 40 years of age.

By this age, we’ve lost a loved one, a parent, perhaps. Maybe we’re realizing we better take the time to arrange our affairs just in case. And while we’re not entirely sure what the whole inheritance and estate-settling process is about – hey, they never taught it in school – the one thing we are darn sure of is that we should avoid probate court.

Legend has probate court fraught with expensive costs, impassive judges, quarreling relatives and greedy lawyers. Like the fabled Hotel California song by the Eagles, you can check out any time you like, but you can never leave. By the time the estate is dragged through probate court, our fears tell us, we’re not sure the family will ever see a dime.

In reality, probate is not the well of horrors that it’s cracked up to be. It’s largely a long list of clerical procedures that attorneys file with the court to make sure the estate is settled (debts, claims and taxes) and assets go to the ones they are supposed to. There’s usually not a lot of fighting or even much drama in probate.

There are ways to avoid it and some of the expense – to do so, you first must understand that there is a difference between estate administration and distribution and the probate process. Every estate needs to be administered and distributed - probate is simply the involvement of a court in that process. Generally, whether probate makes the process more complicated and/or expensive depends on what state’s laws are applicable. But the tasks required to administer and distribute an estate are very similar regardless of whether the estate is being administered and distributed outside probate, through probate, or more typically, through some combination of the two.

Much of the expense incurred with probate attorneys is related to the administration of the estate – simply getting things in order and processing them, rather than the actual court costs. For instance, probate attorney fees can be 1 to 2 percent on a $400,000 estate. Court costs and related fees would be in addition to that. They tend to vary by state and by county, and can be as little as a few hundred dollars.

While it is a process that is supervised by the courts, probate, in itself, is neither bad nor good. Rather, it is how you choose to prepare, or not prepare prior to your passing, that will make probate court and the estate administration process good or bad for your executor and loved ones. Probate can take anywhere from one year to many to accomplish and if you don’t organize things now, it can drag on for much longer.

Need help with organizing your estate information? Check out our EstateLogic(r) program at http://www.executorsresource.com/.

Everyone has a personal and family legacy: What will you pass on?

2010-04-12T10:13:00.000-07:00

By Executor's Resource, Inc.

Joanie and Brad were living a bustling life in a Boston suburb. Joanie was so busy traveling for her job that Brad spent a lot of time raising their daughter, Alison, 9. They didn’t plan for cancer to end Brad’s life at 51, struck down in less than a week after it was discovered.

Brad didn’t have time to leave a legacy to little Alison. Hopefully she’ll remember her dad, but how much? What are his thoughts, his life memories and core values that he would like to pass on to her when she grows up?

The financial aspects of an estate can be fairly cut-and-dried, distributed upon death and not thought too much of after most estates are settled. But the family and personal legacies are different and so much more important than something as simple as money or property. Whether you care about being remembered or not, your loved ones care about remembering you.

What is a family legacy?

Family legacies are comprised of stories and accomplishments, but also of heirlooms – both the objects themselves and digital or print photos of them – family albums or diaries with the family tree (or line of descendants), home movies, photos, newspaper clippings and even that bear rug that Grandpa had tanned after a hunt. Legacies should also tell the written story behind the heirloom, to let your descendants know why it is important. The legacy also includes important family contacts – friends and professionals who are affiliated with the family.

One idea is to develop a simple time line of important family events and write it down. Some grandparents might find it easier to answer questions from grandchildren, all of which can be recorded on paper, computer or in audio.

One of the great things about the Internet and new media is that devices to record family legacies are relatively inexpensive and easy to use and share. You might have to enlist the help of your children, nieces or nephews to help you record audio and video, but it can be done with increasing ease on a personal computer. And photos can easily be scanned and downloaded to a central site and shared. Be sure that older generations identify as many of the people in the photos as possible.

An example that Marcia Mantell, owner of Mantell Retirement Consulting Inc. in Needham, Mass., gives is recording grandfather’s annual reading of The Night Before Christmas on Christmas Eve. After grandfather is gone, future generations can play the video or audio file.

Wealthy families go as far as printing lavish brochures about “what it is to be a Rockefeller,” and update them yearly, something Mantell finds heavy-handed. The key is to forget about getting fancy. Just do something. Small mementos and memories can be priceless to a granddaughter or grandson. Forget about waiting until you are ready to give the speech of your life.

“There’s no right, there’s just do,” says Mantell, who serves as historian for both hers and her husband’s family. To date she has just collected photos, but likes the idea of recording family stories at the next Thanksgiving gathering.

“NPR did a segment where they take a recording booth called StoryCorps around the country and have one generation tell family stories to the next,” Mantell says. “They talk about why dad chose to coach your youth soccer team you -- from his perspective. These stories are so moving and real, all because it’s audio.”

Other family examples: Collect a couple letters that were written between Mom and Dad during their early days. Scan them into the computer to save them. Maybe there’s a postcard from World War II or an old newspaper of Victory Europe day, or a couple of ticket stubs from attending Tom Watson’s historic finish to win the U.S. Open at Pebble Beach in 1982.

Don’t have the “one and done” approach to creating your family legacy. It’s a do as you go project. Get in the habit of saving memories as you go along, because once the real pressure is on, all those wonderful little tidbits that are precious to your family and friends are going to be forgotten.

How is a personal legacy different from a family legacy?

A personal legacy is just that, how you want to be remembered by your loved ones. The biggest mistake you can make, again, is thinking you have to pass on all of the wisdom you’ve learned or summarize the entirety of your feelings for your children and friends. Forget it, you’ll never do it. So just do something.

Keep your heirlooms, war medals, awards, treasured trophies, the old baseball mitt, the story and pictures of Uncle Frank’s death in the battle for the Solomon Islands, in one box.

Try recording a diary of thoughts, a paragraph here and there, when you have a little alone time and can write down what you’re thinking about your daughter, for instance. Say where you are, what made you think of a memory and perhaps something you appreciate about your child for example. It doesn’t have to be profound. It can just be loving. Time will make it profound to your family and friends after you’re gone.

Not motivated? Feel like you can’t write or record? Maybe someone can help you. You can even use the tools in our program EstateLogic, as a basis from which to start. Then, recruit a friend or family member to help. If you continue to add something a piece at a time, you will be surprised how much there is as the years pass. Building your legacy is a process that takes time.

So keep them all, the memories, the scrapbooks, the knick knacks, pieces with historical significance, and more importantly, remember that you’re doing it for your friends and family and future generations, not for you. You’re creating something priceless to them: Your legacy.

Action items for creating a family and personal legacy

• Family timeline - Keep a timeline of major events in the family, with details such as year and location. Simple notes will do. Include births, deaths, marriages, divorces, moves.
• Personal diary – Use any means possible, a written or computer program or video or audio recording, to record your thoughts about your life or your family as you go. Start now. Don’t wait. Use shorter entries.
• Personal and family letters – Keep important love letters from parents or yourself representing major family unions.

• New media – Embrace new media and make audio or visual recordings of family get-togethers, such as holidays and reunions.

10 things to ask my advisor about estate and legacy planning

2010-03-22T10:11:00.000-07:00

By Executor's Resource, Inc.

Do you work with a financial advisor? If he or she hasn't already brought up the topic, it's time to discuss estate and legacy topics with him or her at your regular meetings. The questions below can serve as a guide of discussion points to cover when you meet.

1. What are key considerations in selecting an executor, personal representative or trustee?

2. Do you offer any centralized information of all the accounts I have with you?

3. Can I list you as a key contact and direct my executor/personal representative to you in the future when he has questions?

4. Are there any of my accounts that need additional features added – transfer on death instructions; duplicate statements; automatic bill pay or wire instructions – to make it easier for my executor/personal representative?

5. When did I last update my beneficiary designations? Can you give me copies of every beneficiary designation form so I can keep them all in one safe place? Or can I just direct my executor to contact your office?

6. (If applicable) I recently set up a trust for certain assets. Can you help me with any requirements to retitle my accounts so they are consistent with the trust?

7. Can we meet about setting up more appropriate estate planning accounts – Conversions to a Roth IRA? Rolling over my former employer 401(k)s?

8. Can we discuss insurance options that I should be thinking about to protect my family once I’m gone – life insurance, long-term care, disability, etc.?

9. Can we review the options I have in my employer’s pension plan and decide on best choices for me and my spouse?

10. What information/ resources do you have about dealing with older parents who need to do their own legacy and estate planning?

Don’t forget state estate tax

2010-03-09T13:50:00.000-08:00

By Executor’s Resource, Inc.

All the recent publicity surrounding the federal estate tax may have caused the topic of state death taxes to take a second fiddle in your planning. Depending upon the current net worth of your estate and where you reside for tax purposes, the applicable tax in your own proverbial backyard may be more impactful than the federal estate tax. Here’s some information to use in your planning.

What happened to the state estate tax in 2001 when EGTRRA passed?

When Congress passed the Economic Growth and Tax Relief Reconciliation Act (“EGTRRA”) of 2001, it amended the federal estate tax laws so that the estate tax decreased every two years through this year, at which point it is repealed and disappears entirely. In 2011, the estate tax repeal sunsets and the tax resumes at 2001 rates - 55 percent maximum rate with a $1 million individual exemption.

Prior to the passage of EGTRRA, many state estate taxes were linked to federal law. To protect state tax revenues from EGTRRA’s impact, some states took action by enacting their own separate estate tax, retaining their current estate tax, or so called “decoupling” with the federal estate tax law, essentially opting to link with the version of the federal code that existed before it was amended in 2001.

Knowing the high level estate tax environment inside and outside your state can help you better prepare, especially if you own property in multiple states or are considering a move. Here’s a reference chart to help jump start your own research and assist you in your conversations with your estate attorney, accountant or financial advisor.

While the majority of states do not collect an estate tax, change is still occurring. Kansas and Oklahoma recently did away with their state estate taxes effective January 1, 2010. The estate tax was repealed in Illinois effective January 1, 2010.

Another important consideration for planning is whether you live n a state that currently collects an inheritance tax. An inheritance tax is different from an estate tax in that it is levied on the portion of assets received from an estate by individuals. An estate tax is applied to an entire estate before it is distributed.

Inheritance tax is currently collected in Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania and Tennessee. This tax would potentially be applicable for estate holders who die in 2010 or later, assuming no further changes. Those of you who are several years long in the throes of serving as a loved one’s executor or personal representative may not see that state reflected. Some states, like Connecticut had an inheritance tax in prior years but presently do not.

Bottom line? The state estate and inheritance tax environment should be given due consideration in your comprehensive planning efforts. The tax rates and exemption levels have been moving targets over the past decade, essentially increasing the complexity of an already complex topic. This underscores the need to seek guidance from qualified estate attorneys, tax professionals and financial advisors who can assist you in structuring the best plan given your situation.

Lastly, it highlights the need for you to talk with your future executor or personal representative about what might be in store for him or her in the future. Remember, many family members accept the future role without thinking about what it entails. While understanding all the intricate details now may be less important, having a fundamental understanding of what duties may be involved in settling your estate, timeframes for doing so, the fiduciary standard that executors are held to, and where to seek out professional expertise is imperative in instilling a future sense of confidence in them and peace of mind for you.

For more information, visit http://www.executorsresource.com/.

What you need to do as estate executor

2010-03-08T08:33:00.000-08:00

A bigger responsibility than you might expect

By Executor’s Resource, Inc.

When someone with an estate dies, an executor or personal representative as designated in the will or by law is appointed by the court. If you are the one selected, you may find the responsibility much more than you anticipated in terms of time, expense and heartache.

An executor settles your estate, taking care of debts and creditors and getting assets to your heirs, sort of a CEO of the afterlife.

“If you really want to know what executors do, go to a circus and watch the clown in the center ring juggle several balls while riding a unicycle-- despite the glare of spotlights and the kids bawling in the third row,” wrote Joan Lisante in a 2003 Washington Post article.

Typically, executors are close family members, more often than not a surviving spouse, adult child or close relative. Most people accept the appointment as both an honor and responsibility to those close to them. Rarely do they have an idea of what’s in store.

Wealthy estate holders have it easy. Their executors can hire a team of specialists – attorneys, accountants, financial planners – to handle the endless details. Most middle class estates can’t afford professionals, leaving the “amateur” executor to navigate solo along the time consuming and often tricky route to final estate settlement.

A Long List of Responsibilities
An estate of modest size is not necessarily simple. Regardless of estate value, the executor is required to settle all creditors’ claims, file individual and estate tax returns, accumulate and value all assets, close bank and investment accounts and transfer them to newly created estate accounts, handle the immediate needs of the family, and, finally, disburse the assets to the beneficiaries.

The complexity escalates if there are challenges to the will or if the decedent and the executor reside in different states, as is often the case. Legal proceedings must occur in every state in which there are assets. And although a number of states have similar probate codes, they’re not identical, and an executor must be prepared to encounter unique rules.

Following is a detailed list of the challenges and responsibilities an executor can be expected to face. Some of these are legally required of the role, and some are "expected" duties, essentially what other family members might expect of you as the perceived person in charge.

Immediate Responsibilities
1.Security of Family: Ensure that decedent’s home and possessions are protected. Provisions need to be made for any family financial assistance if required.

2. Organ donation: Determine immediately if the decedent had directions for organ donation.
3. Funeral Arrangements: Determine that funeral arrangements have been made and paid for.
4. Obituary: Help prepare facts surrounding the death and also chronicle achievements of the person’s life and distribute them to the media.
5. Bank Notification: Ensure that banks are aware of decedent’s passing and arrange for all automatic payments to be ceased.

Initial Administration

1. Location of Will and any Trust Agreements: These are the executor’s governing documents and are likely maintained in a safe deposit box or by the decedent’s lawyer. Identify beneficiaries and determine needs of survivors.
2. Death Certificate: Certified copies or photocopies are required for transfer of assets and resolving creditor accounts. Plan to get multiple copies (i.e., 5 to 10).
3. Insurance Policies: Contact insurance agent(s) and obtain copies of life, mortgage and loan insurance policies.
4. Important Contacts: Contact the following to determine if benefits may be available:

a. Social Security Administration: Death should be reported and determination of available benefits.
b. Current Employer: Several immediate benefits may be available including group life, health plans, vested interest in pension, stock or savings plans and final paycheck.
c. Pension Plan Administrators: If decedent was retired or vested, surviving spouse and children may be entitled to benefits.
d. Veteran’s Administration: If decedent was a veteran, burial and other benefits may be available.

5.Post Office: Have mail sent to executor and cancel subscriptions.

Estate Administration

1. Obtain Formal Appointment as Executor or Personal Representative: Obtain “Letters of Appointment” from probate court to legally act on behalf of the estate.
2. Open Estate Bank Account: Open a separate bank account to deposit liquid assets, manage creditors and maintain accounting of expenses.
3. Retain Attorney: Preferably an attorney familiar with the estate, family and who may have prepared the will.
4. IRS: Obtain a Federal Identification Number for the estate using IRS form SS-4. Notify IRS of authority to act on behalf of the decedent.
5. Submit Will for Probate: Upon consultation with attorney, petition court to admit the will. Consider simplified administration for small estates.
6. Obtain Bond, If Required: Based on consultation with attorney if bond is recommended or required.

Estate Management

1. Pay Current Obligations: After consultation with attorney and assuming the estate is solvent, assemble and pay all obligations including mortgages, utilities, credit cards, medical bills, funeral arrangements and other costs covering continual maintenance of home, businesses, properties etc. Determine immediate and ongoing needs of surviving family.
2. Identify and Locate Assets: Identify, locate and inventory all decedent’s assets, including:
a. Real Estate: Arrange for security, maintenance and upkeep assuring that all payments are made and partners, tenants etc. are notified of new ownership.
b. Life Insurance: Identify all policies and determine beneficiaries. File appropriate claims. (See assets not subject to probate below).
c. Valuables: Arrange for protection and safety of decedent’s valuables and appraisals if necessary.
d. Safe Deposit Boxes: Contact bank(s) and arrange for opening and inventory.
e. Bank Accounts: Arrange for transfer of funds to new account in estate’s name.
f. Investment Accounts: Identify all investment accounts and arrange for transfer to estate’s name. Determine if any investment action is required.
g. Businesses: Determine decedent’s ownership or interest in businesses and notify partners, if any, of decedent’s death.

3. Appraise or Value Assets: Determine if outside appraisers or business consultants are necessary to appraise assets and make appropriate arrangements. File inventory with the court if required.

4. Identify Assets not Subject to Probate: Identify and locate all assets that are not subject to probate and that can pass directly to beneficiaries such as:
a. Property held in joint ownership with right of survivorship.
b. Pay-on-death bank accounts and transfer-on-death securities
c. Trust account assets.
d. Life insurance with living beneficiaries other than the estate.
e. IRA, Keogh, SEP, deferred compensation and other accounts not payable to the estate.

5. Manage Assets: Manage existing and on-going assets such as businesses, investments, properties etc. The executor determines whether to continue, sell or liquidate.

6. Manage Creditors and Liabilities: Assure that all creditors’ claim are handled.
Advise all creditors in writing of decedent’s death and the need to resolve all outstanding claims within specified timeframe.
a. Post notice for all creditors to make claims known.
b. Examine all creditor and liability claims to determine their validity.
c. Make final payment of approved creditors and claims.

7. Tax Management: Depending on the complexity of the estate, determine, with advice from financial consultants, appropriate tax strategy.
a. Income Taxes:
- File decedent’s final federal, state and local income tax returns.
- File estate’s federal, state, and local income tax returns for income earned during administration from investments or businesses.
- Use appraisals (or original purchase price) to establish income tax basis.
- Handle any tax audits.

b. Death Taxes:
- Value estate assets for tax purposes.
- File federal estate tax return if estate value exceeds exclusion amount.
- File state inheritance or estate tax return if required.

Distribution and Closing

1. Distribute Assets: Upon payment of all claimants, distribute all remaining assets to beneficiaries as prescribed by will and obtain receipts.
2. Final Accounting: Prepare final estate accounting including reports of all receipts and disbursements and distribute to court if required and beneficiaries.
3. Discharge: Obtain court order discharging executor and closing estate.
Depending upon the situation, there may be additional duties as assigned. For more information or to print out a hard copy of this article, visit http://www.executorsresource.com/. Click on "Resources" and then "Articles."

You've got an estate!

2010-03-05T13:59:00.000-08:00

Most people are not aware it applies to them – even if they are not wealthy

By Executor's Resource, Inc.

Who, me? An estate holder? Don't make me laugh. Wait, let me call Jeeves the butler and have him fix me a sherry (giggle). I'm looking around my house and see the repairs that have to be made. I see an old bike hanging in the garage, hockey skates. My trusty lawn mower. Now there's a 20-year old relic. Really, people like me don't have to worry about estate planning. I don't have an estate.

If you are thinking like the guy above, you are in for a surprise. You've got an estate. You have scrapbooks, photos, memories, books, even that old lawn mower that started every time is part of your estate. And some of it probably has financial value you don't realize, equity in your home (despite its repair needs), a small company insurance policy lying around, the porcelain collection that's collecting cobwebs in the basement. It's all part of an estate.

But maybe we should do away with the word "estate," itself, says financial planner and Executor's Resource founder, Myra Salzer.

"The word ‘estate' is confusing," she says. "Most people would agree they have stuff. Somehow there's this vision that an estate is an expansive house on 500 acres, or a plantation with servants. Actually an estate is stuff. If you have stuff that you distribute when you die, you have an estate."

Here's a quick question for you in explaining this estate thing. What would you think would be the "stuff," as Salzer puts it, that family and friends argue about the most when someone dies? Money? The house on the lake? The Jaguar? Nope.

"The things that people fight about are small and have sentimental value," Salzer says.

"For example, my girls are in their late 20s and I asked them what would you want of ours? My oldest daughter wanted this hideous plastic mixing bowl we've had forever. You couldn't sell it at a garage sale for a quarter. But my daughter has a picture of herself as an infant taking a bath in it. If another daughter wanted it, there would be a conflict."

Other things comprise an estate, such as kids and even pets. Most people think of their children first and what might happen to them and how they would be cared for in the event of unforeseen death.

And what about the tabby Princess, Rover and the three goldfish? Who takes care of them? Any animal owner would love to see their pets go to a good home. That should be accounted for in the will. Salzer has organized animal trusts to care for horses. Let's not even go there with Leona Helmsley giving her dog Trouble, a white Maltese, $12 million when Helmsley died. That may be over the top in planning a will, but the point is that each part of your life needs to be dealt with after death.

Here's an example in Salzer's practice where the lack of planning caused a problem. Her client unwittingly received a large estate from an uncle she was not on speaking terms with. The uncle died without a will (intestate) and under state law, the niece was the only living relative because her brother died two weeks before her uncle did.

The woman felt a great deal of guilt because there were no other heirs to share the money with. She can't exactly give the money away to her brother's heirs because he had none either.

But let's forget all this talk about money, because we started this conversation with the notion that everyone has an estate. Assets, such as a garden or a house, have to be kept up or they disintegrate. That too must be planed for.

Part of your estate may be very sentimental or of value only to you, that golf club collection or grandma's diaries. One person inherited a set of letters from an aide to General George Washington written during the Revolutionary War. Things with sentimental value – think family photos and movies, even your email, Facebook, Twitter, blog or Flickr accounts – are highly important components of an estate.

"It doesn't matter how many zeros or commas there are," Salzer says. "It matters how the recipient feels about the asset and how it affects them." For more information on how to better organize all of your estate information, visit http://www.executorsresource.com/.

Estate Planning Checklist

2010-03-05T09:00:00.000-08:00

What key documents do I need?

By Executor's Resource, Inc.

All of us should be planning for our eventual – or sudden – passing. No death is expected, even if someone experiences a long illness. The shock of it is still there and there never seems to be enough time to prepare for it.

You might be flying overseas, taking a dangerous job or are to be deployed in harm's way if you are in the military.

That's why it's important to chip away at putting your estate in order. Everything you do will make it easier for your friends and family after you are gone. For example, who is in charge of your pets and what should be done with them? The refrigerator needs to be cleaned, the garden and lawn kept up, the newspaper subscription stopped.

First up, the bare minimum
Here's your estate organizer lite, the bare minimum of what you need to make the process a smooth one:

Your will: Whether an attorney assists you or not, this document needs to be where your loved ones can find it. Notify your executor of its whereabouts.

Medical power of attorney: This document names a delegate to make medical decisions on your behalf in the event of your incapacity.

Financial power of attorney: This document allows someone to act in your behalf with respect to your finances and gives him the ability to sign documents, checks, etc. in your name.

Living will: This document provides your instructions to physicians, medical staff, and family on receiving medical assistance in the event that you are unable to.

Just remember that for as long as you are alive and capable, you can update these documents when needed.

Estate Organizer II, The Next Level: Really making things better for your loved ones

Do you care about your loved ones and your heirs? If you do, you should know that anything you do now to organize your important personal information will relieve the burden of your affairs after you pass. And that burden can be quite heavy for someone who is grieving for you.

Doing any one of the following makes it easier on your future executor, personal representative or trustee. If you use an online estate organizer like EstateLogic®, you can place this information in a secure location online - what documents and items you have, their whereabouts, and who to contact in an emergency situation. You can even store e-copies of your documents. When needed your executor and family can access the information you've prepared from any Internet connection.

Your detailed estate planning checklist in alphabetical order:

Adoption papers – these documents will be important in estate matters.

Accountant name and phone number – Also may have your tax return information handy.

Bank accounts and numbers – You can scan in the year-end statement as you go along. It will contain most of the information needed. Also note where hard copy checks are being stored.

Beneficiary forms from 401k, SEP, etc. - These are especially important to locate if you intend to avoid probate court. Beneficiary transfers are typically not subject to probate.

Birth certificate

Brokerage account numbers, account website and passwords, broker contact info – Most brokerage accounts have online account information that can be easily accessed.

Business and partnership contracts – The executor may need to analyze all business holdings and may need to hire an attorney to settle any conflicts on business ownerships, ie. Business valuations and buyouts.

Computer/online account IDs/password listing – This is mainly to access your laptop or other computers, close down any open online subscriptions, email accounts, Facebook or social media accounts, PayPal accounts, online bank accounts and the like. Cover both your personal and any work or business related accounts.

Credit card inventory and balances

Consumer debt documents like including mortgage, home equity loans, auto loans and others – Part of your executor's job is to settle all outstanding debts.

Divorce decree

Driver's license

Employer information - Your present employer, work address, telephone, title, supervisor, and records on any benefits (pension plans, health benefits, life insurance, stock options, etc.)

Estate Attorney - Name and contact information of the attorney who helped you create your legal estate documents.

Family Attorney - Name and contact information.

Financial Advisor - Name and contact information.

Friends and family list - Names and contact information for your direct family, and a listing of friends and others to notify in the event of your death.

Funeral/burial/cremation instructions - Include any information for any prepaid arrangements, service preferences like music, donating to charities in lieu of flowers, etc.

Health records – Often there are unpaid health bills or other costs associated with a long illness that need to be settled. Records should also include your health insurance, immunization records for you, your spouse and any dependent children, among others.

Home alarm code and location of instructions – It could be pretty embarrassing for your executor to trip off your alarm or not know how to work it should you not be around.

Household instructions, including plants and gardens, food removal – You need to write down instructions on contacting the gardener you've hired, how often the plants are watered, what to do with the utilities and hot water heater, and remind your executor to remove perishables from the house.

Insurance policies – Make sure life and health insurance policies are available.

Living will

Marriage license(s) – Some have more than one, and claims might arise after death.

Military papers – Comes into play if military benefits are involved.

Naturalization/citizenship papers

Organ donor preferences

Passport

Pet owernship papers and instructions - Pedigree or adoption papers. Instructions for pets and health records for them. Otherwise Fido might be headed to the pound.

Power of attorney

Real estate paperwork for property owned

Safe deposit box number and key location

Social Security card – Important for identification and benefit claims.

Subscriptions with automatic renewals, newspapers – As referenced before, many subscriptions will automatically renew and cause creditor problems after an estate is settled.

Tax returns – Important to be kept with loan records, insurance policies and other large documents, preferably in a safe or locked file cabinet, but make sure your executor knows where the key is or has the combination.

Trust documents/agreements

Vehicles - Listing of cars, trucks, motorcycles, as well as any recreational vehicles like boats, snowmobiles, RVs, etc.

Will

Not every document in this estate planning checklist will apply to every situation. You could have other documents that apply specifically to your situation that aren't included.

As you complete this checklist, document information for both you and your spouse/partner. Any dependent children or adults also need to be taken into consideration.

Bottom line? Creating an inventory of what you have, where it's located, and who to contact might be the best gift you give to your future executor and loved ones.For more information, visit http://www.executorsresource.com/.