Chapter 2

What goals do I have?

You may begin the process by completing these discovery steps before outlining what you want your plan to achieve. Being armed with this perspective can make the planning process more efficient when you’re ready to sit down with your legal, tax, and financial advisors.

Step one: Complete your personal balance sheet.

Different kinds of property and ownership arrangements result in different ways that property is transferred upon an owner’s death. Here are some of the ways that property may be titled and may impact how your property transfers on death:

• Single ownership
• Tenancy in common
• Joint ownership with rights of survivorship
• In the name of the trust
• Beneficiary designation — often used with life insurance policies; Individual retirement accounts (IRAs); 401(k) plans; annuities; and many types of employment benefits, such as stock options and deferred compensation
• Community property

Having a personal and detailed balance sheet that reflects both the assets and their titling lets you see your total financial picture, including assets that you might not otherwise consider, like life insurance as well as digital assets.

List all assets of financial and personal value. In a separate column next to each asset, indicate the way each asset is held: for instance, “trustee,” “individually,” “joint tenants with right of survivorship,” and so forth. For any beneficiary designation property, list who is named as primary and secondary beneficiaries.

Step two: Gather copies of current documents.

Do you have a will? A revocable living trust? If you have assets, you should consider an estate plan.

Step three: Identify your key goals and issues.

Once you have your documents from steps one and two prepared, this is a good time to sit down with your advisors to outline what you want your plan to achieve.

Here are some potential considerations to discuss with your advisors.

• Many married couples assume that the answer is each will leave everything to the other. If both spouses have wealth of their own or children from a previous relationship, those may be considerations that may require additional planning strategies.
• Parents may want to leave their children enough to meet their basic needs but not so much that it impacts their initiative. This issue may be addressed by deciding to give children less or to pass on wealth in a structured fashion (usually in trust).
• Consider whether you want to make gifts to grandchildren to help them cover expenses, such as education. There are various strategies to achieve that goal with different levels of control. Talk to your estate planning attorney about gifting money directly.
• If you are planning to give to charity, talk with your advisors about whether a private foundation, donor-advised fund, charitable remainder trust, or other such structures are right for you.

Any tax benefits depend upon your individual circumstances. Please consult your tax advisor.

While the operations of the Donor Advised Fund and its Pooled Income Funds are regulated by the Internal Revenue Service, they are not guaranteed or insured by the United States or any of its agencies or instrumentalities. Contributions are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution.

Dividing the wealth: Two approaches

A retired parent with two children has two assets: a home worth $3 million and investment account worth $5 million.