LEGAL NEW YEAR RESOLUTIONS

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 LEGAL NEW YEAR RESOLUTIONS

Q. What would be a good list of legal resolutions to make for the New Year?

A. Every person will have their own list of things that need to be accomplished in their own lives. A common list of items and goals for the New Year would be as follows:

1. Estate Planning: Everyone should have a will or a trust for proper planning of his or her estate. Wills and trusts should be reviewed every two or three years to keep the estate planned properly for distribution and taxes.

2. Insurance:  All types of insurance should be reviewed with your agent and/or attorney. A complete review will determine if you have enough insurance and if you have designated the proper beneficiaries. Shifting of the “owner” of some policies has estate planning advantages. Insurance planning for a “disability crisis” or planning to pay estate taxes with insurance dollars are worthwhile concepts to review and modify, if necessary.

3. Automobile insurance: More and more people are increasing their insurance and/or adding umbrella policies for extra protection. You have worked all your life to obtain what you have, and it could be catastrophic to lose it because of a lawsuit. Increasing your car insurance is one way to limit your exposure to liability.

4. Ownership of assets:  A review should be made of “how” you own things and the resultant impact that death or incapacity would bring upon the assets that you own. For example, automobiles should generally be owned in one name, as the owner(s) of automobiles usually are sued when there is an accident.  On the other hand, assets held in one name such as CD’s stocks and mutual funds to go through probate upon death.  You and your attorney should review how you own your assets and understand the consequences of death or incapacity and how you can change the ownership to minimize estate and administration costs.

5. Real estate transactions:  All real estate transactions, including contracts for additions to your home, should be reviewed by an attorney before signing. An attorney may help you avoid problems with (1) receiving or giving proper title; (2) termites; (3) mechanic liens; (4) dishonest contractors; and (5) properly licensed individuals.

6. List of instructions:  A well-planned list of funeral instructions and arrangements as well as what family members are to receive regarding personal effects within a household, makes it much easier on family members at the time of a loved one’s death.  Your attorney can draw provisions within your will to allow you to make a separate list of these items.

7. Financial inventory:  Everyone should have a goal to become financially organized. This would include a complete list of all assets and liabilities in a systematized format. Not only will this help you understand your net worth, but it would also make it easy for loved ones to handle financial matters at a time of need.

8. Preparing for the future:  It would be a great idea this year to purchase an organizer book that contains important and valuable information regarding your estate. This would also be a wonderful tool for your loved ones to have in the event that it is needed upon your incapacity or death. This organizer should include all personal, family, estate planning, and health care information, all financial information, personal property information, funeral instructions, pet instructions, email and online accounts information, and other important information to you. This organizer should also contain a section to record all of your legal, medical, financial, accounting, banking, stocks and bonds, IRA’s, 401K or pension plans, social security, military benefits, real estate, insurance agencies, religious advisors, and a section for any debts. You can rest assured knowing that you are not just preparing directions for your estate and financial information but also for your other important and sensitive information.