While none of us likes to think about dying, the fact of the matter is that improper or no planning can lead to family disputes, assets going into the wrong hands, long court litigations and huge amounts of dollars in federal tax.
At minimum, you should create a will, power of attorney, healthcare surrogate, and living will – and assign guardianship for your kids and pets. If you're married, each spouse should create a separate will, with plans for the surviving spouse. Also make sure that all the concerned individuals have copies of these documents.
15. Simplify Your Finances
If you've changed jobs over the years, it's quite likely that you have several different 401(k)-type retirement plans still open with past employers or maybe even several different IRA accounts. While this normally won't create a big problem while you're alive (except lots of additional paperwork and account management), you may want to consider consolidating these accounts into one individual IRA account to take advantage of better investment choices, lower costs, a larger selection of investments, more control and less paperwork/easier management when assets are consolidated.
16. Take Advantage of College Funding Accounts
The 529 plan is a unique tax-advantaged investment account for college savings. In addition, most universities do not consider 529 plans in the financial aid/scholarship calculation if a grandparent is listed as the custodian. The really nice feature is that growth and withdrawals from the account (if used for "qualified" education expenses) are tax-free.If you have grandchildren and the assets to do it, consider opening a plan for each grandchild.
The Bottom Line
Now you have the ammunition to get a pretty good jump-start on reviewing your overall financial and estate picture; the rest is up to you. While you're sitting around the house watching your favorite sports team or television show, pull out a tablet or laptop and start making your lists.
You'll be surprised how much “stuff” you've accumulated over the years. You'll also find that your inventory and debts lists will come in handy for other tasks such as homeowners insurance and getting a firm grip on your expenses.