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Advanced Planning Checklist

Wealth Transfer

  • Create/review your estate plan, which should include a Last Will and Testament, Durable Power of Attorney (financial), Durable Power of Attorney (healthcare), and a Living Will/Healthcare Proxy. The estate plan should provide for your spouse/partner and any minor, disabled, or special needs children, and provide for family members who are irresponsible with money, or who might need future protection from creditors or divorce.
  • Create a balance sheet, listing all assets and liabilities.
  • Create a personal document checklist to include: the location of important documents and statements, digital accounts (including passwords), and names and contact information of all professionals (i.e., financial advisor, attorney, and accountant).
  • If employed, create a list of your employee benefits, including insurance and retirement plans.
  • Review the beneficiary arrangement of all accounts, including IRAs, 401k plans, 403(b) plans, and other retirement accounts, life insurance, annuities, and checking and savings accounts.
  • Add a TOD (Transfer on Death) to non-qualified investment accounts and a POD (Payable on Death) to checking and savings accounts.
  • Consider a Revocable Living Trust for more control and protection.
  • If a business is owned, create a plan to sell or transfer ownership of the business. A buy-sell agreement is often used for this purpose.

Wealth Protection

  • Review/purchase life insurance – life insurance can be used to provide survivorship income, pay off debts, provide liquidity, equalize an estate among family members, and pay estate taxes.
  • Review/purchase disability insurance – if employed, disability insurance can replace income in the event of a disability.
  • Review/purchase long-term care insurance – to protect your assets in the event of an accident or chronic illness that would cause you to spend down your assets to pay for care.
  • Freeze your credit and consider identity theft insurance.
  • If investment properties are owned, set up an LLC to own the properties.
  • If a business is owned, assess different forms of ownership for the business.
  • Review your property and casualty insurance, including your homeowner’s, auto, and umbrella insurance coverage. If a business is owned, review the business coverage.

Wealth Enhancement

  • Evaluate the risk in your investment portfolio to determine if it matches your risk profile.
  • Evaluate the tax impact of your investments.
  • Consider a Roth conversion, if appropriate.

Charitable Giving

  • Review your charitable goals and priorities and review LPL’s Charitable Planning Decision Flowchart for guidance.