Whether you are updating your Last Will and Testament or dividing assets in a divorce, don't forget to address the "little" things. Oftentimes its the little things like safe despot boxes that get forgotten even thorough they may hold the most monetary or sentimental value. Many of those same items may be overlooked during the planning stage either because they were simply forgotten, there were bigger fish to fry at the time, or they didn't want to "rock the boat" with it. Nearly every time it will come up again later and someone won't be happy. Here's a short list of some commonly overlooked "little" things.
IRA, 401(k), Life Insurance, Annuities and other Beneficiary Designations. Review your beneficiary designation forms. If a trust is named as the beneficiary, review the trust document to determine the ultimate beneficiary(ies) and consider using a fractional share formula in the trust to avoid early income recognition on funding the trust (a taxable event). If you are in the midst of a divorce, and your spouse is to name you as the beneficiary on an annuity or life insurance, consider asking for the beneficiary designation to be "irrevocable". An irrevocable beneficiary has more rights, and would have to give permission before the beneficiary designation could be changed.
Frequent Flier Miles and Points. Many times the number of miles or accumulated points is quite large. Have your attorney specifically include language in your Will or Divorce documents to specifically require the transfer of miles or points. A Will can include them in the definition of your "personal property". Divorce documents can include them in the section dealing with the division of marital property.
Digital Assets. Digital assets includes your account login and password information to your bank accounts, investment accounts, internet service provider, your smartphone, PayPal, Amazon Prime, and other service providers. It also includes your gaming characters, LinkedIn profile, photos stored in an online sharing account, domain name, Facebook page posts, and digital currency. Florida was one of the first states to adopt a digital assets law granting digital asset owners the right to protect and transfer digital assets during life or at your passing.
Business Value/Goodwill. No matter which valuation formula is used, the value of a business is more than just the sum of all its hard assets (the things you can touch). There is also the intangible "goodwill" (what you can't physically touch). It's that portion of the business value that is the result of reputation, repeat business, contracts and contract rights, or a special "recipe". Goodwill is often a large part of the value of a business. A surviving spouse or divorcee needs to carefully review any buyout offer to be certain that an appropriate valuation formula was used, the offer price includes all the hard assets, and goodwill has been included in the valuation.
Contingent or Future Assets. Contingent assets are things that may be received later. These include, security deposits, capital loss carryforwards (on tax returns), stock options, business and personal tax refunds, potential personal injury award, potential employment lawsuit settlement, bonuses or commissions earned that have not been paid out yet, and pending inheritances. Failing to include these assets in your estate planning or failing to list them in a divorce, might cause you to loose the right to claim the asset in the future.
Fiduciary or Custodial Assets. The most well drafted estate plan or divorce isn't complete if it fails to consider ownership of custodial or fiduciary accounts set up for the benefit of minors or disabled people. These types of accounts include 529 Plan accounts, UGMA and UTMA accounts (Uniform Gifts or Transfers to a Minor Accounts), and ABLE accounts (Achieving Better Life Experience). For estate planning purposes, consider naming a successor owner for the account to ensure continuity of management after your death. In divorce, if the other spouse will be the owner of the account going forward, consider protecting the funds by including instructions for the use of the funds in the divorce documents.
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