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This should include a summary of all your investment accounts, beneficiary designations you have created for your retirement accounts, life insurance information (usually naming your spouse as a primary beneficiary, and children second), and your computer passwords. Have you discussed with your spouse your annual budget? How much should your spouse plan on spending each year? Which account should she tap first for living expenses? Many retirees postpone tapping your IRAS until age 72 if you have other assets available in order to obtain maximum income tax deferral).
You can simplify routine monthly financial transactions through direct deposits into your bank account and direct bill payment. For example, most brokerage companies will set up your monthly distributions so the funds are automatically payable directly into your checking account. What advisers do you recommend for your spouse, including tax accountant, investment adviser, or home insurance agent? You might consider having your spouse accompany you to your annual meetings with your accountant or investment adviser so that your spouse can become familiar with your financial affairs.
Finally, your spouse will want to remember to handle those pesky annual tax reporting tasks. This includes assessing your county personal property, paying real estate taxes by Oct. 10 of each year, paying quarterly IRS estimates, and organizing your income tax information to be delivered to your accountant each spring.
Wesley Harris is an associate attorney at Farrar & Williams, PLLC, a law firm limiting its practice to trusts, estate planning, and elder law, located at 1720 Higdon Ferry Road, Suite 202, Hot Springs, Arkansas, and can be reached at 501-525-4401 or by email at wesley@farrarwilliams.com. Wesley can answer any questions you have about this subject.