© 2004 ME™ (Your Money Education Resource™) 1 Estate Planning Chapter 14: Basic Estate Plan

2 © 2004 ME™ (Your Money Education Resource™) 2 Basic Estate Plan  Identify heirs Competence  Impact of inheritance Trust Relationship  Equal amounts?  Identify assets Beneficiary designations Property ownership type  JWROS, living trust, etc.

3 © 2004 ME™ (Your Money Education Resource™) 3 Basic Estate Plan  Identify assets Personal assets = hard feelings?  Lock the door after death  Methods of distributing Discuss and tag before death  Heirs rotate order in each round of selection  Specify in side instruction letter Auction  Allocate points to heirs for biding

4 © 2004 ME™ (Your Money Education Resource™) 4 Basic Estate Plan  Review use of applicable estate tax credit Bypass trust?  Review charitable intentions

5 © 2004 ME™ (Your Money Education Resource™) 5 Basic Estate Plan  Prepare documents Will Health care power of attorney Medical directive Trusts  If needed, begin annual gift program

6 © 2004 ME™ (Your Money Education Resource™) 6 Basic Estate Plan  Monitor the plan  Change when: Tax law changes Marriage Divorce Adoption/birth of child At least every five years