By Valentino Sabuco
Universal Press Syndicate

Q: A close family friend and his wife died in an accident last year at
53. They didn't have a will or any estate planning and dealing with
their estate has been a mess. I don't want this to happen to my spouse
or family. What can we do to get our estate planning house in order
and keep it there?
-- A. M., Kentucky

A: Estate planning is a very important component of everyone's
financial planning, regardless of the size of the estate. It's the
only way to control what happens to your assets when you become
disabled or pass away.

You can't just talk about estate planning because verbal agreements
aren't legal. You'll need to have your attorney put it in writing.
Here's how to save time and money on legal fees to get your estate
planning house in order and keep it there over your lifetime.

WRITE DOWN YOUR PERSONAL GOALS -- Identify beneficiaries who you want
to inherit something when you die. Specify how much, what percentage
or which assets go to each person or charity. Take note of the special
needs of any beneficiary, such as a disability preventing work or an
inability to manage money, and identify backup beneficiaries in case
your first choices do not survive you.
If you don't have strong feelings about individuals, consider
selecting a favorite charity or "cause" to be your primary or
secondary beneficiary.

Also, consider the timing for distributions to designated recipients.
Some beneficiaries can handle a large, lump-sum distribution. Others,
such as children, benefit from distributions that are spread over time.

Identify guardians of the person to raise your minor children should
you and your spouse die or become incapacitated. Also select guardians
of the property to handle your children's inherited assets. Identify
backups, too.

Identify executor(s) and trustee(s) to carry out your wishes after
death. You'll need an executor to administer your will, and if you
have trusts, you need to name trustees to manage them.
For each position, come up with several choices because you don't know
who will be willing and able to serve when the time comes. Consider
selecting two or, in larger estates, three trustees as a
check-and-balance system.

Identify other decision makers to carry out your health and money
choices for you if you're incapacitated.

For special needs and concerns, list any sensitive family
circumstances or concerns you have that may affect your planning, such
as prior marriages, ill parents, troubled children.
GATHER PERSONAL AND FINANCIAL INFORMATION -- List full names,
addresses and Social Security numbers for you and your family members.

List your current financial advisers.

List your assets and liabilities.

Gather retirement plans and beneficiaries' statements.

Identify how you hold title to each asset.

Summarize your cash flow.

Gather employment benefits statements, life insurance policies, deeds
to real property, partnership and business agreements, and the last
two years of income tax returns.

Include divorce papers, premarital agreements, existing estate plan
documents and any other such documents.

List questions, concerns and ideas.

SEEK OUT THE RIGHT ATTORNEY -- Identify several attorneys who
specialize in estate planning by getting referrals from your certified
financial planner, certified public accountant, banker, financial
adviser and-or friends. Call the attorneys and ask how many wills and
trusts they have prepared this year and in the past 10 years. Ask
whether they also handle estate administration after someone dies to
see if they're familiar with issues after a death.

Ask how they charge. Estate-planning attorneys are specialists, and
some charge hourly rates, $100 to $500, while others charge a flat fee
for document preparation. Ask if they will provide an introductory
meeting with you at no charge. Make sure you are comfortable with your
attorney as he or she will be asking you thought- provoking questions
and you will be discussing personal affairs.

MAKE THE MOST OF YOUR FIRST MEETING -- Bring your notes and the
information from above when you meet with an attorney. This could save
one to five hours (or more) of billable time. Discuss your overall
goals and see how they can be met.
Ask the attorney about the main documents that need to be prepared:

Will
Living trust

Durable power of attorney for asset management

Advanced health care directive or a durable power of attorney for
health care

Before leaving the attorney's office, if you are satisfied, request an
engagement letter quoting the fee for services and a brief summary of
your estate plan -- written in terms you can understand -- to serve as
a record of the decisions made. Confirm that you're taking advantage
of all tax-saving possibilities and, when desirable, avoiding probate.

REVIEW AND SIGN DOCUMENTS -- Have copies of draft documents sent to
you for review and approval. Note questions and changes in red ink in
the margins. Be specific. If you have an estate worth more than $1
million or a complex family situation, have a copy of your documents
sent to your CPA or financial adviser for a second opinion. Discuss
questions and possible changes with your attorney.

After you sign the documents, ask your attorney where they should be
kept and what should be provided to family members, executors and
trustees.

TAKE CARE OF TITLE AND BENEFICIARY DESIGNATIONS -- Have your attorney
make sure that titles on all your assets and your beneficiary
designations, such as life insurance and retirement plans are
coordinated with your will and-or living trust.

UNFORTUNATELY, ESTATE PLANNING IS FOREVER -- Call your attorney about
updating your plan at least every three years or any time you have
major changes in your personal situation because of births, deaths,
marriage or divorce, as well as significant increases or decreases in
the size of your estate.

Estate plan documents are technical and very dry; they do not
communicate personal feelings. Consider drafting a personal letter to
your spouse and family expressing your final thoughts and feelings.
It's important to keep your key financial paperwork readily
accessible, for those who will be dealing with your affairs when
something happens to you.

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