The following are additional documents or arrangements that you should consider prior to incapacity or death.
- Credit Reports: These documents should be obtained by the agent under the durable powers of attorney should a person be incapacitated to guard against scammers. Also obituaries are a playground for scammers to arrange credit cards or new accounts for dead people. The Trustee should obtain credit reports from one of the three credit reporting companies (Equifax, Experian and TransUnion) every four months to cover a year to determine if any credit cards or accounts were established post-death.
- Debts: You should list all your debts and recurring bills to avoid them being overlooked by your Trustee or Executor. Indicate whether they are received digitally and automatically paid from a designated account. If possible, scan the first page of all billing statements and debts owed and keep these documents with your Estate Planning documents.
- Usernames and Passwords: Provide a list of your username and passwords for your Trustee and/or Executor to obtain after your incapacity and/or death. Place this list somewhere it can be easily found or indicated to your Successor Trustee where it can be found. I do not recommend that it be placed in a safe deposit box.
- Safe Deposit Boxes: Put any safe deposit box in the name of your Living Trust for access by your Successor Trustee.
- Loans Owed to You: Provide details and a balance sheet of loans made by you to 3rd parties, especially children, so there is no issue of this arrangement at your incapacity or death. This is a major issue among siblings at the death of the parent when the estate is to be distributed equally among the children. All of a sudden calculators come out by siblings to make sure they are getting their fair share. These problems may quickly advance to court proceedings unless you have a Trust Protector designated in your Living Trust.
- Personal Assets: Make a list of valuable personal assets, jewelry, paintings, automobiles, furnishings, etc. that need to be appraised for value at your death. If any are to be designated for a particular beneficiary, put it in writing as part of your Living Trust and indicate whether or not it is to be counted as part of their share of the estate. For all other personal assets, indicate a scheme for selection. For example, by age of the children or drawing playing cards or a roll of the dice, with the highest card or number going first, second, etc.
- Pets: Do not overlook your pets which many do. When there are no takers, many pets end up in shelters. If you don’t provide for a Pet Sub-Trust in your Living Trust which is enforceable and recommended, at least leave some directions for your pet caretaker regarding the needs of your pet: type of food, name of Vet, the amount of funds to be held for the pet’s care. These instructions are not enforceable unless incorporated into your Living Trust. This is why we recommend a Pet Sub-Trust.
- Schedule of Assets: Annually update your Schedules A and B which should be attached to your Living Trust. Schedule A lists the assets owned by your Living Trust, like real properties and non-retirement accounts. Schedule B includes assets not owned by your Living Trust such as retirement plans. These schedules are essential for your Successor Trustee in locating your assets at your death or incapacity. You may amend your Schedules A and B at any time by crossing out old bank accounts or attaching additional pages listing new accounts. Also, make a copy of the designated beneficiaries of your retirement plans, life insurance and annuities.
- Legacies: If you wish to leave a legacy represented by monetary funds in your Living Trust, for example, for a grandchild to remember you by, indicate such in your Living Trust or incorporate it by reference on a specific bequest form.
- Funeral/Cremation Plans: Make sure these plans are identified as part of your records. If you are to be cremated, indicate where your ashes are to be scattered or whether this is to be at the discretion of your designated person. You may also wish a particular person to handle your memorial service, if any, and if you desire anything about your life to be memorialized.
To incorporate these important provisions into your Estate Planning documents, please contact Stephens Law Group at jes@jackstephens or call (858) 792-0909 for an appointment.
Blessings,
Jack E. Stephens, J.D., LL.M