Books

Step 13-15

The Experts

The Tax Expert

No one wants to pay more taxes than required, at any time of life. There may be a few tax-saving opportunities that can be lost at death if not acted upon before death, so you should meet with your tax advisor to discuss as the laws do change.

1. Meet with your tax advisor to update him/her on the potential terminal or incapacity situation.
2. Inquire about whether there are any unrealized gains that should be realized in order to use up any tax loss carryovers from previous years that could otherwise be lost upon death.
3. Same question with charitable contribution carryovers that could be lost upon death.
4. Consult your tax advisor for any additional tax planning considerations allowable by current law.

The Legal Expert

So many clichés in life end up being so true, including the one that reminds us “we get what we pay for.” Don’t try to take any shortcuts with your estate planning – see an attorney.

1. Ongoing visits with an estate planning attorney, especially near the end, will be invaluable in getting things where you want them to go with the least cost and delay.
2. Estate planning documents are less likely to be contested if drafted by an attorney vs. a fill-in-the-blank will/trust kit.
3. Gifting limits and charitable contributions can be thought through more thoroughly.
4. Direct payments to medical, dental or educational institutions (none of which count toward the annual gift exclusion amount) may make sense to consider.

The Planning Expert

The tax advisor helps consider taxes, the legal expert gives advice based on the law, but there is no one overseeing the big picture of your financial life with you so consider working with a financial advisor.

1. A CFP, Certified Financial Planner, has a fiduciary duty to advise on what is in your best interest.
2. For help acting on the tax and legal advisor’s advice, as well as to consider all areas of financial planning, a CFP® can be your advocate and assist in communicating and implementing the advice of the team of advisors.
3. It’s tough; we sometimes don’t want our children too involved, this is not an area we are comfortable talking about in detail with other family or friends, so who else can we turn to?
4. You need someone licensed (so you are protected), experienced (so you are not the guinea pig) and trustworthy (so you don’t get hurt), who will care about, and  help to take care of your financial needs.

For more on these chapters and other steps to take before a major life event happens, check out my book the “Before” Financial Checklist: 15 Important Actions to Complete Before the Loss of a Loved One, available on Amazon.

Step 11

The First Month: Miscellaneous “To Dos”

1. Go to the DMV (Department of Motor Vehicles) to cancel driver’s license and transfer vehicle title.
2. Notify the Registrar of Voters.
3. Cancel any medication prescriptions, print subscriptions, and memberships.
4. Delete online personal accounts: email, social media, business sites, etc., to avoid fraud or identity theft. Procedures for each will vary.
5. Send out acknowledgements for cards, donations, etc., if you’ve decided that is something you want to do. This can also be delayed until a time that you are ready and able to tackle this project.
6. Contact the Post Office with forwarding information, if necessary.
7. Cancel all services no longer needed, i.e. phone, internet, cable, etc.