This is the final installment of a three-part series, designed to help you understand estate planning fundamentals from creating the documents to effectuating the plan. In this final part, we focus on the important follow-up items after executing your estate plan.

Part one: Key documents and fiduciaries Read 
Part two: Beneficiary and distribution decisions Read

Finalizing your estate plan and executing the necessary documents marks an important milestone, but it's not the final step in the process. To maximize the effectiveness of your plan, there are several essential follow-up actions you should take to make sure your assets flow through your estate plan as you intend.

1. Inventory your assets

An important part of the estate planning process is documenting what assets you own. While you may be able to recite that information if asked, it can be helpful to you, your fiduciaries and your beneficiaries if there is a comprehensive list that details: asset type, approximate fair market value, and title to the asset (e.g., individual name, joint with right of survivorship). Keeping a current asset list is important both to understand how your estate plan impacts each asset and to ensure that all of your assets can be identified at the time of your death.  

2. Fund your revocable trust

If your estate plan includes a revocable trust, retitling your assets into the name of your revocable trust during your life makes certain that the benefits of the revocable trust — e.g., disability planning, avoiding probate and privacy — are available to you and your beneficiaries. Some considerations when funding your revocable trust include the following:

• Types of assets: Bank accounts, investment accounts, real estate and business interests are all examples of assets that can be retitled to your revocable trust. Note that retirement accounts — e.g. an IRA, 401(k) — cannot be transferred to your revocable trust during your life.
• Joint assets: If you own an asset in joint tenancy with right of survivorship (JTWROS) with another person, then the asset will automatically transfer to the surviving co-owner at the first death. For estate planning reasons, you may want to change that JTWROS ownership to tenants-in-common between the revocable trusts of the co-owners or divide the assets between separate accounts held in the revocable trusts of the co-owners. Further, if the co-owner is your spouse, you may want to title the entire asset in the name of just one spouse’s revocable trust. The best approach will vary depending on your circumstances, so it is important to consult with your attorney before changing the titling of joint assets.  
• Paperwork: The paperwork required to transfer title to your revocable trust will vary depending on the type of the asset and its current ownership. Your attorney and financial advisors can provide you with the appropriate paperwork to transfer your various assets to your revocable trust.
• Access: Retitiling assets in the name of your revocable trust should not change your access to those assets since your revocable trust likely gives you complete control over the revocable trust. In addition, there will be no change in your income tax reporting for the assets in your revocable trust because the trust will be treated as the same income taxpayer as you.
   

3. Update your beneficiary designations
Certain assets, such as retirement accounts, annuities and life insurance policies, are controlled by beneficiary designations rather than by the terms of your will or revocable trust. Update these designations to ensure they align with your estate plan and reach your intended beneficiaries upon your death. Some important considerations when updating your beneficiary designations include the following:

• Contingent beneficiaries: It is important to name both primary and contingent beneficiaries. Without both of these, there is a possibility that these assets could pass to your estate, causing unnecessary probate and loss of potential income tax benefits.  
• Transfer on death (TOD) / payable on death (POD) accounts: If any of your bank or investment accounts have a TOD or POD designation associated with them, you should discuss with your attorney whether to retain that designation or retitle the account in the name of your revocable trust. Retitling the account in the name of your revocable trust should result in the account passing through your trust rather than pursuant to the beneficiary designation.
   

4. Create a tangible personal property memorandum

Your will or revocable trust may include a provision allowing you to create a memorandum to dispose of your tangible personal property — e.g., jewelry, furniture, artwork — among your beneficiaries. While state law varies on whether this writing is binding or just guidance to your fiduciary, you should consider creating such a memorandum if you wish to designate specific items to certain individuals beyond what is outlined in your documents. The memorandum can be kept with your original will and revocable trust to ensure that your instructions are easily accessible by your fiduciaries after your death.
 

5. Manage your digital assets

In today’s digital age, your estate plan should consider not only your traditional assets such as investments and real estate, but it should also reflect your digital assets. To manage your digital assets for estate planning purposes, consider taking the following steps:

• Create a digital asset inventory: Compile a comprehensive list of your digital assets, including online financial accounts, electronic communications, social media profiles and digital currencies, along with associated passwords. Be sure your fiduciaries and/or family members know where to find this list.
• Access provisions: Ensure your estate planning documents include provisions that grant your fiduciaries access to these digital assets. Some digital service providers allow you to designate a successor account manager, so review and update this information periodically.
   

6. Communicate your plan

Effective communication is key to ensuring that your estate plan is executed as intended. Consider the following ways to communicate your plan:

• Informing family and fiduciaries: Share details of your estate plan with family members and fiduciaries, including contact information for your advisors and medical providers as well as the location of important documents.
• Clarifying roles: Ensure that your fiduciaries understand their roles and responsibilities and confirm their willingness to serve in these capacities. This can help prevent misunderstandings and conflicts later on.
• Providing context: Consider providing beneficiaries with age-appropriate information about your assets, the structure of your plan, and any specific instructions you wish to convey. This transparency can foster understanding and cooperation among family members, now and in the future.
   

Conclusion

While comprehensive estate planning documents are critical to ensuring that your wishes are expressed and that your loved ones are taken care of, it is just as important to implement and maintain the plan that is set forth in those documents. Working with a qualified estate planning attorney will help you determine the best path for you and your beneficiaries at each step in the implementation process. In addition, regularly reviewing and updating your estate plan, including how your assets are titled and your beneficiaries are named, will help you and your plan adapt to life changes and maintain clarity.
 

Judy Saxe is a senior wealth strategist for CIBC Private Wealth in Boston, with over 30 years of industry experience.