ESTATE PLANNING ALARMS CHECKLIST
By Lorin Castleman, Esq.
Certified Specialist, Taxation Law
California State Bar Board of Legal Specialization
THE CASTLEMAN LAW FIRM
A Professional Corporation
5970
Stoneridge Mall Rd., Suite 207
Pleasanton, CA 94588
(925) 463-2221
fax: (925) 463-0328
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The purpose of this checklist is to highlight some situations that are "red flags" indicating a
need for (a) the creation of an estate plan, or (b) the review of an existing plan, or (c) the
modification of an existing plan. This is a basic checklist, and is not complete by any means;
there are many circumstances not listed which require careful consideration. This checklist can be
used by advisors when reviewing their client's situations or by individuals.
ANY SIZE ESTATE
- Personal Issues
- No goals
- Wealthy descendants
- Planning for own estate only without considering tax
effect on younger generations
- Anticipate inheritance
- Parents have planned for their own estates only
- Chronic illness or life-threatening medical condition
- Problem family members
- Existing or potential medical, mental, or emotional
problems of family members
- Divorce
- In-law or step-child concerns
- Second + marriage; children of different parents
- "Sensitive trustees" (Beneficiary also trustee)
- Recent death but no consultation with attorney
-
-
- Document Issues
- No will
- Joint tenancy
- Trust mill trust
- Unfunded trust
- Inflexible trusts
- Trust without disclaimer provisions
- Trust without GST provisions
- "Five and five" power in bypass trust
- Estate not reviewed within last 5 years
- Change in family but no change in plan
- Change in wealth but no change in plan
- Trust for child, remainder to grandchild
- No generation skipping planning
- No Advance Health Care Directive (formerly known as a
durable power of attorney for health care)
- No (or old) Durable Power of Attorney for Asset
Management
- Trust and Durable Power for Asset Management not
coordinated to permit gifts from trust or amendments to trust
- Installment note - cancellation or transfer by will or
trust
-
-
- Financial Issues
- Insurance not in irrevocable trust
- Beneficiaries of IRAs, Qualified Retirement Plans, are
not individuals
- Planning to sell highly appreciated asset
- Withdrawal right notices not given or not properly
given
- Gifts to grandchildren
- Payments for education or health not made directly to
provider
- Funding 1st to die life insurance trust from community
property
- Gifts with retained interests
- Proposed sale of assets from C Corp
- Potential IRD issues
- One spouse wealthier than other
- Non citizen spouse and no QDOT
- Participant in IRA or QRP approaching age 701/2
- Proposed disposition of installment note
SINGLE AND ESTATE MORE THAN $1,500,000
All of the Above Issues Plus:
- No gifting considerations
- No valuation discount considerations for larger
estates
MARRIED AND ESTATE BETWEEN $1,500,000 AND LESS THAN $3,000,000
All of the Same Issues as for Any Size Estate, Plus:
- Simple will or trust
MARRIED AND ESTATE MORE THAN $3,000,000
All of the Same Issues as for Any Size Estate, Plus:
- Simple will or trust
- No gifting considerations
- Estate is planned for maximum tax deferral
- No generation skipping planning
- No creditor-predator protection planning
- No valuation discount considerations for larger estates
Copyright © 1998, 1999, 2000, 2002, 2004 by Lorin Castleman. All rights reserved
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