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Your family planning checklist
As summer begins, now is the time to review your family estate plan. Life is too uncertain to fail to en- sure that your affairs are in order and your family is protected in the event of a sudden illness or death. Here are ways to keep your estate plan current.
Review your existing will or living trust.
We are starting with the assumption that you have an estate plan — but the reality is that most people do not have one. That
still up to the tasks and responsibilities that you have given to him or her?
Review your beneficiary designations. Life insurance, de- ferred compensation, and IRAs pass directly to the named ben- eficiaries who aren’t minors under the age of 18 and don’t have a legal disability. Assets that pass by beneficiary des- ignation are typically not controlled by the terms of your will or any trust agreements. Review your primary and successor beneficiaries for accuracy. Speak to your ben- eficiaries about the importance of preserving tax ben- efits and possibly stretching the deferred tax as part of
their retirement plan.
Review your power of attorney documents. Illinois revised
its power of attorney statute in 2017. While powers of attorney executed before that date are still effective, it is advisable to re- view your existing financial and health care power of attorney documents to ensure that your chosen agent and successor agents are accurate. Remember, no one is legally authorized to sign your name without this document, and only you can ap- point someone to make health care and end-of-life decisions on your behalf.
Review existing insurance coverage (life, homeowners, um- brella, disability, LTC, etc.). As the value of your assets changes, your liability exposure also changes. It is important to review your current policies and personal circumstances to determine whether you need an increase in coverage. Be certain to notify companies if you have changed the title to auto or real estate to your trust.
Review how your assets are titled. As a general rule, all assets must be titled in the name of your trust. If you are still working as the police, and you are married, the title to your principal place of residence should be in tenants by entirety. Certain oth- er assets can be titled outside the trust up to a collective value of $100,000.
Avoid probate. It is essential to avoid the costly probate pro- cess with a fully funded living trust, which will also provide asset and special needs protections for your beneficiaries. Re- member that having a current estate plan and living trust is not a retirement issue. It is important today, and it is valid if you move to another state. Assets in all other states can be titled in your Illinois living trust now to avoid the risk of multiple pro- bate proceedings if you should die suddenly.
This month’s article delayed my promised article on how you can protect your children’s inheritance in the event of their di- vorce, from the risk of lawsuits, if they acquire a disability, and even how to prevent your children from contesting your wishes. Stay tuned for this info next month!
Call my office today to lock in your FOP 50 percent reduced rate for a living trust. Registration in the Benefits Plan for FOP members and family is free.
Visit www.fopbenefitsplan.com or call 866-729-5454 for as- sistance with registering. d
Tom Tuohy is the founder of Tuohy Law Offices and the FOP Ben- efits Plan. He has been a police lawyer for 35 years. His father was a CPD detective, and his grandfather was CPD Chief of Major Investigations. You can reach Tom at 312-559-8400.
TOM TUOHY
is why probate is such a nightmare, with tens of thou-
sands of cases in the system. If you do not have a will
or a trust, or if you only have a will, your family will be in probate. If you have an estate plan, consider these questions: Do you have any changes in your beneficiaries? Has any bene- ficiary acquired a disability since you created your plan? Have circumstances changed where you now need to protect a ben- eficiary’s share from creditors, divorce or another risk? Do you need to add a new beneficiary?
Consider whether your named trustees or executors are still appropriate. Are any of your children or other beneficia- ries old enough to now be named the successor trustee? Is your originally named trustee or executor older now, or has he or she moved out of state or died? Is your current trustee or executor
FOP
Benefits Plan
62 CHICAGO LODGE 7 ■ JUNE 2018