How to declutter your life, what happens if die without a will, uses and purposes of essential trusts, the responsibilities of trustees and executors, a dire warning to your IRA beneficiaries, how to provide protection if you become incapacitated, your other wills, business buy-sell agreements, what records you need to keep, ethical wills and statement of values, estate liquidity, how to choose a guardian and arrange for an allowance for them, how assets can be left to a minor and a priceless gift you can give your children.

Getting Your Affairs in Order

How to arrange things to simplify your life so that others can easily pick up where you left offBy Edward Mendlowitz

iUniverse, Inc.

Copyright © 2012 Edward Mendlowitz
All right reserved.
ISBN: 978-1-4620-7089-3

Contents

Introduction...........................................................................................................xiiiChapter 1: Decluttering Your Life......................................................................................1Chapter 2: Purposes of Estate Planning.................................................................................4Chapter 3: Why a Will is Needed........................................................................................7Chapter 4: Your Other "Wills"..........................................................................................12Chapter 5: Forms of Ownership..........................................................................................14Chapter 6: Assets Included In An Estate................................................................................16Chapter 7: Estate Liquidity............................................................................................19Chapter 8: Life Insurance..............................................................................................21Chapter 9: Irrevocable Life Insurance Trust............................................................................23Chapter 10: Crummey Letter.............................................................................................26Chapter 11: Trusts.....................................................................................................30Chapter 12: Total Return Trusts........................................................................................34Chapter 13: Choosing Executors and Trustees............................................................................37Chapter 14: Trustees' Investment Responsibilities......................................................................39Chapter 15: Living Trusts..............................................................................................43Chapter 16: Credit Shelter Trust.......................................................................................46Chapter 17: Qualified Terminal Interest Property ("QTIP") Trust........................................................50Chapter 18: Choosing a Guardian for Minor Children.....................................................................51Chapter 19: How Assets Can be Left to a Minor..........................................................................54Chapter 20: Payments to a Guardian.....................................................................................56Chapter 21: A "Gift" for Your Children.................................................................................57Chapter 22: Bow Wow and Meow...........................................................................................59Chapter 23: IRA, 401k, 403b, Roth IRA, Roth 401k and Other Pension Planning............................................60Chapter 24: Pension Choices............................................................................................69Chapter 25: Social Security and Medicare...............................................................................74Chapter 26: Incapacity.................................................................................................75Chapter 27: Power of Attorney..........................................................................................77Chapter 28: Living Will and Health Care Proxy..........................................................................79Chapter 29: Disability Income Insurance................................................................................81Chapter 30: Long Term Care Insurance...................................................................................82Chapter 31: Other Insurance Coverage...................................................................................83Chapter 32: Business Agreements........................................................................................86Chapter 33: Escheat....................................................................................................87Chapter 34: What Records You Should Keep...............................................................................89Chapter 35: Funeral Arrangements.......................................................................................93Chapter 36: Letter of Instruction to Family............................................................................94Chapter 37: Ethical Will or Statement of Values........................................................................95Chapter 38: Conclusion.................................................................................................98Worksheet 1: Important Papers Listing and Checklist....................................................................101Worksheet 2: Checklist of Estate Planning Things to Do.................................................................104Worksheet 3: Estimated Assets to be Included in Estate and Potential Distribution to Beneficiaries.....................106Worksheet 4: Designation Sheet.........................................................................................107Worksheet 5: Terms of Trusts...........................................................................................109Worksheet 6: Fact Sheet................................................................................................111Worksheet 7: Specific Bequests.........................................................................................112Worksheet 8: Balance Sheet.............................................................................................113Worksheet 9: Cash Flow and Income......................................................................................116Worksheet 10: Life Insurance...........................................................................................117Worksheet 11: Pensions and Annuities...................................................................................118Worksheet 12: Financial Obligations....................................................................................119Worksheet 13: Checklist of Things to Get Rid of........................................................................120Worksheet 14: Passwords................................................................................................122

Chapter One

Decluttering Your Life

Clutter robs you of time.

Think about how much time you waste looking for something. You pass over the same things time after time; you spend time to make room for more "good things" that you just have to have; or you spend energy looking at piles of stuff that you know "you'll need some day" but you never seem to have time for that "day" so the piles grow and grow and grow.

The one thing we have that is the same as everyone else is time, yet some seem to get so much more done, have so much more fun, and always seem ready to do something or go somewhere, while others just never seem to. The quantity of clutter is the difference between the doers and the never-get-to-doers.

I know many people, including myself, that never let go of anything. But I've also seen many friends move to what might be their final residences and somehow they get rid of tons of stuff. They are not any different than the...