• New Property Tax Uncapping Exemption for Transfers to Children:  This Bill, signed into law on December 27, 2012, amends the General Property Tax Act to allow parents to transfer residential real estate to a child (or certain other close family members of the first degree) without triggering an uncapping of the property taxes.  It should be noted that this bill is only effective for transfers after December 31, 2013 and the use of the property must not change following the transfer. For more information on issues related estate planning for a cottage or vacation home, please visit our blog.
• 529 Plans Now Protected from Creditors:  This bill, effective January 2, 2013, exempts educational trusts and savings accounts, such as Michigan Education Savings Program accounts and 529 Plans, from being seized or garnished under a court judgment (i.e., a bankruptcy proceeding or when a creditor sues for repayment of a debt). 
• Decanting: No Longer Just for Wine.  Do you have an irrevocable trust which contains provisions which you'd like to update?  The Michigan legislature may have provided a new solution. In late 2012, Michigan became the most recent state to permit trust "decanting."  Decanting is the process of "pouring" assets from one irrevocable trust into a different irrevocable trust, as long as the beneficial interests do not change materially. 
• New Power of Attorney Formalities. Michigan's newly enacted law regarding durable powers of attorney for financial transactions now requires that, before exercising authority under a durable power of attorney, an agent (or attorney-in-fact) must execute an acknowledgment of his or her responsibilities. Also, prior law contained no formal requirements for execution of a durable power of attorney, only that it be in writing.   The new law requires that it be signed either in the presence of two witnesses or before a notary public.  As a practical matter, our clients have always signed in the presence of a two witness and a notary, except in exigent circumstances.  These requirements do not apply to durable powers of attorney executed before October 1, 2012, but it may be prudent to verify your agent has signed the required acknowledgment to ensure financial institutions will honor your durable power of attorney when it is needed. 
   

What of significance did not pass in 2012?  A package of legislation which purported to enhance Michigan’s Medicaid Estate Recovery program.  Michigan's existing Estate Recovery program, which was implemented on July 1, 2011, allows the State to recover amounts paid to medical assistance recipients through the Medicaid program following the recipient's death, but it is limited in scope to probate assets.  The failed legislation would have dramatically increased the reach of Estate Recovery and allowed State liens to be placed against a recipient's property.  We're on the lookout for a draft of new legislation, likely to be introduced in 2013.

• Charitable IRA distributions which are completed by February 1, 2013 can be treated as if made in 2012.
• A distribution from an IRA to the IRA owner in December 2012 can be treated as a qualified charitable distribution in 2012 if the amount is transferred in cash to charity before February 1, 2013.

Note:   Unlike the other provisions of ATRA 2012, the charitable IRA transfer is again set to expire at the end of 2013.

While estate tax planning is only one aspect of the estate planning process, the permanence of the new law provides a welcome contrast to the uncertainty about exemption amounts and rates that the last ten years provided.

The permanence of ATRA provides a welcome contrast to the uncertainty about exemption amounts and rates that the last ten years provided.The new legislation makes permanent the $5,000,000 "applicable exclusion amount" (i.e. each person's gift and estate tax "exemption") and sets the generation skipping transfer ("GST") tax exemption at the same amount. 

The Estate, Gift and GST taxes are all indexed for inflation going back to 2011, so the starting point for each in 2013 will actually be $5,250,000.  This amount will continue to increase periodically in relatively small increments based on the rate of inflation. 

The estate tax rate on taxable estates over $5,250,000 is increased from 35% to 40%.

The concept of "portability," as introduced in 2010 legislation, continues.   This means that if the estate of the first of a couple to die is not large enough to fully utilize his or her applicable exclusion amount, the unused portion is shifted to the surviving spouse.  For example, if the husband dies first with $3,000,000 of assets, the $2,250,000 of his applicable exclusion amount which was not needed to shelter his assets from tax may be transferred to the wife, giving her an applicable exclusion amount of $7,500,000.  In other words, each couple is permitted to shelter as much as $10,500,000+ from estate tax, regardless which spouse dies first or how their assets are titled.  Keep in mind there are somewhat complex IRS filing requirements to elect portability, including the filing of an estate tax return [Form 706].

These rules vastly simplify gift and estate tax planning for a couple (and alleviate the transfer tax concerns of most single people as well).  More particularly:

• Unification of gift and estate tax:  The $5,250,000 "applicable exclusion amount" can be given during lifetime, and if not used then, is available upon death.

• Simplified planning for married couples:  If a couple is confident they will never have more than $10,500,000 of combined wealth and it is extremely unlikely that the combined estates will ever exceed that figure, they need not do any estate tax planning.  From a gift and estate tax standpoint, the couple could own all of their assets jointly with no disadvantage.  However, a single joint trust or separate trusts might still be advisable to avoid probate proceedings, provide a receptacle for gifts to children, obtain a step up on basis, for asset protection, or to impose some limits on the surviving spouse's right to dispose of all of the couple's wealth as he or she sees fit.

• Making things easier for the surviving spouse:  A couple who has less than $10,500,000 of combined wealth and no concerns about the surviving spouse's control of their wealth can make things much simpler for the surviving spouse by converting separate trusts to a single joint trust that would serve only as a probate avoidance device and would eliminate the need for separate accountings, additional tax returns, etc. after the death of the first spouse to die.

• No tax reason to transfer ownership of assets:  Even if a couple's assets may exceed $10,500,000, there is no need to shift asset ownership to assure that each spouse has a certain minimum amount in his or her individual name (or in his or her Trust).  Before "portability", minimization of transfer taxes required shifting the title to assets between spouses to assure that neither spouse had more than his or her applicable exclusion amount if the other spouse had less.

• For couples who desire more control:  If each spouse wants to control disposition of his or her assets when the surviving spouse dies (e.g. to assure that the assets pass to the decedent's children and not to the surviving spouse's children from a prior marriage or the surviving spouse's next husband or wife), it will still be necessary to have separate trusts and to identify which assets belong to which spouse.

In other news, the 2013 annual exclusion gift amount is increased to $14,000 (or $28,000 from a couple) per year per recipient.  These annual gifts are permitted in addition to a gift during life or at death of $5,250,000.  If it appears likely that a couple's combined wealth may exceed $10,500,000 (or that a single person's wealth will exceed $5,250,000), then it makes sense to continue annual exclusion gifts to children, grandchildren, or others.  In that event, other planning ideas may be appropriate, such as the use of irrevocable trusts or discount entities, which ATRA left available.

State-Sponsored College-Savings Plans (or 529 Plans)

Perhaps the most heralded college-savings option, the “529 plan” is a wildly popular investing option because it draws upon the best attributes of other savings options while eliminating most of their drawbacks. Each state is authorized to create a college savings plan under Section 529 of the Internal Revenue Code, and each plan is managed by a state government, typically under contract with a professional custodian and money manager.

Michigan’s college-savings plan is called the Michigan Education Savings Program (or MESP) and it is managed by TIAA-CREF (the investment manager for college retirement plans). Michigan also has a prepaid tuition program, the Michigan Education Trust (or MET) which allows families to pre-pay tuition for Michigan educational institutions. The MESP and the 529 plans offered by other states have virtually replaced the MET. In most cases, the rules related to the MESP will mirror those of other states’ plans.

Tax Benefits

Perhaps the most important feature of the MESP is that all earnings in an account grow on a tax-deferred basis. The benefit here is at least two-fold: Obviously there is an increased performance in the portfolio with no adverse tax costs. Moreover, parents will be relieved to find an end to the maddening stream of 1099 forms issued each year by trust custodians reporting capital gain tax distributions to be reported on their child’s behalf.

Earnings on any distribution used to pay for qualified higher education expenses (i.e., tuition, books, supplies, fees, and certain room and board costs for accredited post-secondary education) are free from federal and Michigan income taxes.

Michigan also allows an income tax deduction on contributions to the MESP of up to $5,000 for single taxpayers and $10,000 for married taxpayers filing jointly. This factor argues in favor of the MESP over other state sponsored plans for Michigan residents.

Contributions

Unlike the Education IRA (discussed below) there are no income limits restricting eligibility to contribute to the MESP. Contributions must be in cash, and can start with very small amounts, as little as $25. The maximum cap on contributions to MESP accounts is incredibly large. An account owner can add to a beneficiary’s account if at the time of the contribution, the total balance of all accounts (including prepaid tuition accounts in the Michigan Education Trust Program) for that beneficiary does not exceed $235,000.

Contributions to an MESP account qualify as present interest gifts to the beneficiary, and thus qualify for the gift tax annual exclusion. Moreover, one may “pre-fund” the MESP account at up to five times the annual gift tax exclusion amount and claim the annual gift tax exclusion over the succeeding five years. This year, an individual could contribute $78,000 to a beneficiary’s MESP account with no adverse gift tax consequence. While this is a great opportunity to front-load a saving plan, a donor must be mindful of any current gifting programs for the children in order to avoid unintended taxable gifts.

Ownership and Control of the MESP Account

The donor of the funds is the account owner (despite the fact that the transfer to the account is a completed transfer for gift tax purposes) until funds are withdrawn for educational expenses. The account owner can change the account’s designated beneficiary to any other member of the original beneficiary’s family (i.e., siblings or their descendants, step-siblings, parents, ancestors of parents, stepparents, niece or nephew, aunt or uncle, first cousins, in-laws, and spouses). This can be done at any time with no penalty. If the designated beneficiary is changed or the account is rolled into an account for another beneficiary, the original beneficiary will be treated as having made a taxable gift to the new beneficiary if the new beneficiary is in a lower generation than the original beneficiary. This is the case even if the original beneficiary did not cause the change to occur.

An account owner may even withdraw the funds from the account for his or her own personal use. In such an event, all earnings will be taxed as ordinary income and an additional 10 percent penalty will be assessed on the portion of such withdrawals representing investment gains. It has been suggested that the revocation rules open an opportunity for tax deferred investing for an otherwise ineligible investor. For example, assume a mother contributes the maximum amount possible to her qualified retirement plan annually and is seeking additional methods of tax-free investing. She could set up MESP accounts for each of her children, maximize her contributions to those accounts, pay for college expenses from the accounts, and withdraw the balance for her own use after each child finishes college. The withdrawals will be taxed and penalized, but the many years of tax-free growth should more than compensate for these costs.

A contingent account owner should always be named to avoid probate upon the death of the original owner. The MESP form states that the contingent owner must be a U.S. citizen or a resident alien with a social security number or a taxpayer identification number, but a revocable living trust may likely also be named as the contingent account owner. Consider attaching a statement to the enrollment form naming the successor trustee of your revocable living trust as the contingent account owner. Any subtrust designated within the trust document that has the authority to administer the MESP for the designated beneficiary should also be identified. Your Durable Power of Attorney or Last Will and Testament may include language granting the successor account owner the power to appoint his or her successor, since only one successor account owner may be named on a 529 plan. Your agent under your Durable Power of Attorney may also be granted the power to made decisions regarding your 529 plan. The MESP also has its own form which allows an account owner to appoint an attorney-in-fact to take action with respect to the MESP on behalf of the account owner.

“Rollover” From UTMA or UGMA Accounts

The MESP and other 529 plans are rapidly replacing the UTMA account as the vehicle of choice for simple college saving. One of the very useful parts of many 529 programs is the availability of direct transfer from existing UTMA accounts into a new 529 plan. The transfer will require certain restrictions on the new account which do not exist with a standard 529 plan in order to protect the interests of the UTMA beneficiary. Since the assets of an UTMA account belong to the child, it would be impossible to transfer those funds to a normal 529 plan which is owned and controlled by the parent/donor. Instead, a limited access 529 account is available as a receptacle for UTMA transfers. The custodian of the UTMA controls the 529 account, but he may not transfer the account assets to another beneficiary and he may not withdraw the assets for his own benefit. Also, the child will still gain control of the account upon attainment of age 18 or 21, depending on the originating account.

Following the transfer of an UTMA account to a 529 plan, most states will maintain two accounts for the beneficiary. One will hold all proceeds from the UTMA transfer, and another will hold all subsequent contributions. The second account will enjoy the full benefits of a typical 529 plan.

Investment of Account Assets

The account owner controls the investment of contributions, though only from a fairly limited number of investment offerings. Most states offer a menu of several fairly generic mutual funds, and typically one age-based portfolio which automatically changes as the child ages, investing mainly in stocks when the child is young before gradually shifting to bonds and money-market funds as college age nears. Most plans also limit the ability to substitute or redirect investments once investments are put in place.

Typically, investment mix can be changed only once per year or when there is a change of beneficiary, and only to other funds within that same state-sponsored plan. While limited investment freedom is cited as one of the few downsides of the MESP and other 529 plans, more choices are constantly being added as program managers try to entice consumers away from one state’s plan and to their own plan.

Note that management fees will be incurred, since every Section 529 plan is operated by a brokerage firm with investments held in mutual funds which charge fees for managing the funds and administering the plan. The Michigan fee of
.35% is among the lowest in the country.

Paying For College Expenses

Assets in any 529 plan can be used to pay for qualified expenses at any accredited institution of higher education in the U.S. as well as some foreign institutions. Qualified expenses include tuition, books, supplies, fees, and certain room and board costs.

For many donors, the Section 529 plan provides an easy, cost-effective method of providing for a child’s or grandchild’s college education. Section 529 plans are becoming big business. See “The Internet Guide to Section 529 Plans,” which you can find at www.savingforcollege.com, for information on the various plans and comparison charts.

COVERDELL EDUCATION SAVINGS ACCCCOUNT (F/K/A THE EDUCATION IRA)

The Education IRA was introduced in the late 1990s and was a dramatic shift in policy regarding college savings. These accounts offer tax-free growth and tax-free withdrawals for education. The passage of the enabling legislation and the popularity of these plans paved the way for the introduction of the 529 plan. Ironically, the dramatic benefits of the 529 plan have eclipsed the Education IRA such that many mutual fund companies no longer offer them, opting instead to concentrate on the 529 plan.

In contrast to a state-sponsored college-savings program, an Education IRA [now known as the Coverdell Education Savings Account (ESA)] gives the account holder complete control over investments, allowing ownership of virtually any type of investment. Also in contrast to a state-sponsored college-savings program, funds can be withdrawn tax-free to pay for private elementary and high school expenses.

Perhaps the most striking difference between the ESA and a state-sponsored college-savings program is the cap on contributions. Total contributions to an ESA account cannot exceed $2,000 per year – more reasonable than the original $500 cap, but miniscule compared to the $78,000 that can be gifted to a 529 account in one year under the shelter of the annual exclusion. Similarly, while there are no income based restrictions on contributions to a 529 plan, a donor can only contribute to an ESA if his adjusted gross income is less than $220,000 on a joint return ($110,000 on an individual return). Finally, no contributions are allowed to an ESA for a designated beneficiary who is age 18 or over, and the ESA must be used by the time the beneficiary is age 30, at which time the funds must be distributed to the beneficiary.

ESAs belong to the donee, and that ownership cannot be defeated by the donor. Unlike the 529 plan where the donor maintains the power of revocation, the ESA will eventually pass to the donee whether for college expenses or otherwise.

CONCLUSION

Selection of the best alternative for funding a child’s education will depend on your personal and financial situation. None of the formats is “better” than the others. Careful consideration should be given to the expected eventual size of the account, the intended purpose of the assets, and your individual estate planning needs.
We would be happy to discuss your personal circumstances to help you find the college savings plan that best fits your objectives.

Section 2503(c) Trusts

For parents who wish to establish a trust account for a child’s education in a way that will not generate any gift tax consequences, there are two alternatives. The first is a so-called “2503(c) trust.” Section 2503(c) of the Internal Revenue Code specifically allows a trust to be established for a child under age 21 which will qualify for annual exclusion treatment.

Benefits

The parent can retain complete control of the trust property, at least until the child reaches age 21. There is no need for “Crummey” withdrawal notices (discussed below) and, to the extent the trust is maintained for college costs only, virtually all the trust assets may be gone by the time the beneficiary attains age 21.

Drawbacks

The biggest drawback is that upon the child reaching age 21, the trust must terminate and the remaining assets must be distributed outright to the beneficiary. So, if the trust is intended to hold more than college funds, this technique may be less attractive since the beneficiary will have complete control upon attaining age 21. A common technique for extending the term after the beneficiary attains age 21 is to give the beneficiary a short period of time after reaching age 21 (perhaps 60 days) during which she has the unrestricted right to withdraw the remaining trust funds. If the funds are not withdrawn, the assets can be continued in trust. The other big disadvantage is income tax – the earnings on the trust assets are taxed at trust income tax rates (with highly compressed tax brackets) to the extent that the earnings are not distributed to the beneficiary.

Crummey Trusts

One of the most famous names in estate planning is Crummey, from the 1968 case in the U.S. Court of Appeals (Crummey v. Commissioner, 397 F.2nd 82 (Ninth Circuit 1968)), which established a technique for transferring assets to a trust while receiving annual exclusion treatment. Essentially, a gift is made to a trust on behalf of a beneficiary. Immediately following the gift, notice of the gift is given to the beneficiary (or the non-donor parent of a minor beneficiary) and the beneficiary is given a period of time during which the gift may be withdrawn from the trust. When the withdrawal period ends, the gifted amount irrevocably becomes the property of the trust. Crummey confirmed that the withdrawal period creates a present interest in the gifted amount so that the gift qualifies for the annual exclusion.

Benefits

There are few restrictions on the design of a Crummey trust. Once the contribution and withdrawal language is set, the trust can be designed in a multitude of ways. There is no mandatory right to trust income, nor is there a mandatory distribution of trust principal at age 21 as required by the 2503(c) trust or UTMA. Although income distributions are not required to be made, the income of the trust can be taxed to the beneficiary. The lapse of the withdrawal right is generally believed to cause the beneficiary to become a grantor of the trust and accordingly, the income will be taxed to him or her. This is a desirable result after the child attains age 19 and presumably, is in a low income tax bracket.

Drawbacks

The administrative burdens of documenting gifts and withdrawal notices can be significant and confusing. You inevitably face the dilemma of dealing with a beneficiary who inquires about distribution of the amount over which he or she holds a withdrawal power each year when the Crummey notice is given.

We'll wrap up this series in the next edition as we cover State-Sponsored College-Savings Plans (or 529 Plans).

Outright Gifts

This is the simplest way to transfer assets to a minor child. Because an outright gift will belong to the child immediately and forever, the gift will qualify for the annual gift tax exclusion ($13,000 in 2011, or $26,000 if splitting gifts between husband and wife). While the child is under age 21, the funds can be managed by a parent under the Uniform Transfers to Minors Act (UTMA), which essentially establishes a simple trust for the child. Prior to age 21, the income earned on these assets is taxed at the higher of the child’s or the parent’s top marginal income tax bracket. Any type of property, including real estate, may be transferred to the minor under the provisions of the UTMA.

It is important to note that UTMA does not automatically allow a custodian to manage assets until age 21. Like its predecessor, the Uniform Gifts to Minors Act, UTMA automatically grants authority only through age 18. In order to extend the relationship through age 21, the original transfer to the minor must include the words “as custodian for _______________ (name of minor) until age 21 under the Michigan Uniform Transfers to Minors Act.”

Benefits

The obvious one is simplicity. UTMA accounts can be established at any bank, brokerage, or mutual fund firm as easily as opening any other account. There are no accounting requirements or separate tax filings to manage. Moreover, earnings on UTMA assets can be taxed at the child’s rate after attaining age 19, or 24 if the child is a dependent full-time student.

Drawbacks

The biggest is control – once a beneficiary reaches age 21, the child can control the account and can spend the money as he or she sees fit. Also, assets of an UTMA account would negatively affect financial aid availability as the money is considered part of the child’s savings, a factor which weighs heavily when schools are determining aid. If you’re concerned about estate taxes, it’s important to avoid naming yourself as custodian. If you die before the account terminates, the account will be included in your estate. This is true even though the transfers to the account are completed gifts. This problem can be avoided by naming as custodian someone who will not make any gifts to the account. For example, a grandparent might name the parent as the custodian.

Section 2503(e) Gifts

Since direct payments of tuition qualify for a special gift tax exclusion, one of the more common college saving techniques is saving in a separate account in the parent’s name.

Benefits

The biggest one is its simplicity. It also gives the parent absolute control of the assets. Since the assets do not belong to the child, the savings account will not affect financial aid availability as negatively as it would if the account belonged to the child. If and when the child attends college, there are no gift tax issues because there is an exclusion from gift tax for transfers made directly to an educational institution for tuition in addition to the annual exclusion discussed above. Overall, it is a good solution for parents with a relatively modest estate for whom estate taxes are not an issue.

Drawbacks

The drawback is that it does no gift or estate tax planning for the parents and any income on the assets will always be taxed at the parent’s top marginal income tax rate even after the child attains age 19.

As we continue this series on financing education, stay tuned as we'll discuss next Section 2503(c) trusts and Crummey Trusts.

There are some basic requirements: It must be written, made with full disclosure (no hiding those off shore bank accounts from your significant other), it must be completely voluntary, it cannot encourage divorce, and it must be notarized.  It is also suggested that both parties have their own attorney look at the document before signing.  Many people do not get a prenuptial agreement because they do not have many assets when they get married.  However, what if you acquire assets during your marriage as the result of your hard work, should your spouse be entitled to take half of your hard earned assets?  You can also write in agreements guaranteeing that you are entitled to certain assets, even if you were not working.  For example, if you agreed with your spouse that you would not work, but would stay home and raise your children, you should be entitled to assets earned during the marriage.   Also consider if you are set to inherit a family business, and wish to keep that business in the family, this can be accomplished through a prenuptial agreement.  

Finally, if confrontation is a concern, there are ways to ease the negative connotations associated with a prenuptial agreement: you can choose to limit the contract to a number of years (i.e. the agreement is only effective for the first 5 years of marriage), it is only enforceable in cases of infidelity (or any other condition you both choose), or you can use it to divide up debts as well as assets.  All in all, talking about a prenuptial agreement is not like taking a long walk on the beach to watch the sunset.  However, it can be a means by which you show your significant other that you love them, and not his or her stuff.  Varnum can help you create a prenuptial agreement that will suit your specific needs.

(Editor's Note: Attorney Jessica DesNoyers authored this post while working in Varnum's Grand Haven office. Jessica is currently with another firm.)

Many Michigan residents are lucky enough to spend the winter in sunny Florida.  If you are one these snowbirds, do you have a Durable Power of Attorney and an advanced directive for your health care decisions that are compliant with both Michigan and Florida law?  If not, you could cost your estate or your loved ones a lot of money if something were to happen to you and you were unable to make decisions for yourself.  If you do not have a document that is recognized by the law of the state you are living in that names someone to legally make decisions for you, your loved ones may be forced to go through the courts in that state to get an individual appointed to act for you.  This is a decision that you should make for yourself, as you know best who you would trust to make important decisions for your regarding your finances and health care.  The Florida law related to these documents is considerably different than the Michigan law; therefore, if you have Michigan compliant documents but you spend a large portion of time in Florida, you should contact an attorney and get Florida compliant documents drafted as well.  Varnum has attorneys who are licensed in many states, including Florida, and we can assist you in meeting this important need.  We can help you protect yourself and your assets by drafting an entire estate plan that will cover you in both Michigan and Florida.

(Editor's Note: Attorney Jessica DesNoyers authored this post while working in Varnum's Grand Haven office. Jessica is currently with another firm.)

1. Take care of your family

One of the most important things a well drafted estate plan can do for you is take care of the ones you leave behind.  Whether it is for your minor or special needs children who need a guardian and/or conservator, or your family pet that you don’t want taken to the pound, it is important to make your wishes known and legally enforceable.

2. Ensure your assets go where you want them to go:

Maybe you do not have children or siblings, or you do but do not wish to leave your assets to them, you can distribute your assets elsewhere through your estate planning documents.  For example, you can leave your assets to a charity, family friend, or significant other.  If you die without a Will, Michigan law states that your spouse is automatically distributed a certain amount from your estate, next your children will get a share (or your parents if you have no children), and then more remote descendant (such as siblings, nieces, nephews, grandparents) could get a share.  If no one is legally able to take your estate, it goes to the State of Michigan.

3. Save money:

Going through the probate court can take a lot of time, and can cost a lot of money in court fees and costs, and attorney fees.  While you won't be around to have to worry about it, wouldn't you rather spend a little money now to save a lot of your money later?  I say save "your" money later, because these expenses can be paid for out of your estate. Make a New Year's resolution that is easy to keep and set up an appointment with an estate planning attorney today.

(Editor's Note: Attorney Jessica DesNoyers authored this post while working in Varnum's Grand Haven office. Jessica is currently with another firm.)

1. Meet with an attorney to ensure your estate plan is up-to-date, and you have all the documents you need.
2. Keep all of your estate planning documents together and in a safe place, and let your attorney or a trusted family member know where they are.
3. If you have retirement accounts, money market accounts, or insurance policies where you've named beneficiaries, keep all of those document together with your estate planning documents.  Confirm that your documents name the beneficiaries you want named.  Keep company contact information with the documents so that your family knows who to contact at the company to make a death claim and receive benefits.   
4. Keep all title documents together with your estate planning documents, or if kept in a safe deposit box or safe, make a note with your estate planning documents altering family of where it is how to access it.  This would include title to cars and real estate. 
5. If you have specific personal items you want to give to certain individuals, make that clear.  You can create what is called a "holographic will" for personal items by handwriting (not typed) what items you want to give to which people or entities, write the date on the document and sign it at the end of the document.  This does not take the place of an estate plan, but can be used to distribute items such as family heirlooms. 
6. Finally, keep a list of all the assets you have that will need to be transferred.  No, you do not need to list every plate in your cupboard.  You should, for example, list which banks you have accounts with and what types of accounts, where you own real property, life insurance policies, and vehicles or "toys" (i.e. boats, ATVs, etc.) you own. 

Being organized is relatively easy, and the benefits of the time you take today will be a gift to your family after you are gone.  Call an estate planning attorney today to assist you in the process.

(Editor's Note: Attorney Jessica DesNoyers authored this post while working in Varnum's Grand Haven office. Jessica is currently with another firm.)