EstatePlanningEveryone likes practical pointers. Here are more than eight,
but fewer than ten practical estate planning pointers for your consideration,
especially as we enter a new year.

  1. Keep your important documents like your will or
    trust up-to-date. Keep your legal residence address, marriage status, children,
    guardian list, etc. updated.
  2. Keep track of beneficiaries for all of your
    IRAs, qualified plans and insurance policies. If you don't, they may be going
    to someone you no longer wish to receive them.
  3. Maximize the liquidity of your estate. Liquidity
    is defined as the ability to quickly turn assets into cash. Without sufficient
    cash to pay taxes, funeral, and other expenses, your family may have to sell
    illiquid assets – such as a family business or other property – at an
    inopportune time.
  4. Maintain an appropriate mix of investment risk.
    Over time, more risky investments like stocks and mutual funds should be moved
    into safe and stable investments such as annuities.
  5. Name a dependable executor and/or trustee.
    Executors are called upon to collect assets, pay obligations, and distribute
    your assets. Your trustee must enforce all the provisions of any trusts you
    created. Choose people who have the knowledge, integrity and stamina in the face
    of pressure from family members to fulfill these obligations.
  6. If you have minor children, consider naming one
    guardian for your minor children and a separate guardian for the property
    you've left to support them. The best guardian for your children may not be the
    most effective money manager you know.
  7. Estate planning for your spouse. If your net
    worth is high enough, your estate may be subject to taxes. A simple estate plan
    can potentially save your loved ones hundreds of thousands of dollars in estate
    taxes.
  8. Leaving the right assets to the right people.
    Make sure proper financial management systems are in place for people such as
    special needs children, teenagers, or other dependents.
  9. Plan, plan, plan. While estate planning is
    important for everyone, it is most important for business owners, who must plan
    for the succession and/or buyout of their business.

This is just
a quick review of issues that should be addressed by you and your attorney when
creating your estate plan. Remember, every situation is different and your
estate plan is not going to look exactly like your neighbor’s estate plan. It
is always best to contact an experienced estate planning attorney to assist you
with all of your estate planning options.

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