Items to you may have that you should bring
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This is a sample of items. You may not have several of these items, but bring what you do have or have access to. ***We prefer copies***
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Pay Stubs and Benefits Summary o Review for the following items: ▪ 401k and 401k Catch-Up Contributions ▪ Flexible Spending Account (Are clients contributing and consuming) ▪ Life Insurance (compare pricing to individual term insurance) ▪ Disability Insurance (compare pricing to individual coverage) ▪ X-Mas Club Contributions (going into a taxable account) ▪ Vacation hours Accrued ▪ IRA / Roth IRA Eligibility ▪ Alimony / Child Support deductions appropriately identified / taxed
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Most recent federal and state income tax returns o Charitable contributions ▪ If incurring capital gains and client is making charitable gifts, talk about gifting the appreciated assets to charity instead o 1099/K-1 income ▪ Possibility of Individual 401k / SEP IRA o Tax Carry-forward/ Carry-back amounts o 2% miscellaneous itemized deduction floor ▪ Is client keeping track? If floor is met, your fees may be deductible o Adjustments to income ▪ IRA/401k contributions, student loan interest, etc. o AMT ▪ Are ISO’s going to cause any issues?
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Employee benefit statements and booklets o Convertibility of coverage !1 LPL Financial - A Registered Investment Adviser. Member FINRA/SIPC
o Distribution/Rollover options for qualified plans ▪ Are in-service withdrawals are allowed? o Open enrollment/qualifying event ▪ Is there a high deductible plan available? •
Pension statements and/or booklets with pension formula o Payout options for life and/or beneficiaries ▪ Is purchasing life insurance a better avenue to pursue?
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Most recent Social Security benefit statements o Benefit calculations for various payouts ▪ Use actual numbers is financial plan
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Values of titled personal assets o Approaching unified exclusion amount? ▪ Are the assets in trust?
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Most recent investment statements o Registration of accounts ▪ Are non-titled personal assets disposed of in a will?
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Most recent mortgage statements, o Origin date and amount ▪ Is there a HELOC established or available credit on existing HELOC? o Duration of loan ▪ Negative amortizing o Interest rate ▪ Adjustable/Interest only
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Estate Planning Documents o Wills ▪ State of execution ▪ Verify location of original ▪ All pages received !2 LPL Financial - A Registered Investment Adviser. Member FINRA/SIPC
▪ Verify designated executor / executrix inline with current client wishes ▪ Positively identify all parties to all documents including names, addresses, role, relationship, ages ▪ Review distribution provisions to verify provisions are inline with current client wishes ▪ Review disposal of personal property with client to verify provisions are in line with current client wishes ▪ Does the Will include Custodial Provisions for Minor Children? •
Verify named guardians and confirm they are in line with current client wishes
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Verify contact information for guardians are up to date
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Is the guardian of the minor children and the trustee of any assets the same person?
o Trust Documents ▪ Verify location of original ▪ State and date of execution ▪ Properly Signed, Notarized, and Dated to ensure they are in effect ▪ All pages and addendums received ▪ Verify type of trust established (Family, Individual, A/B, QTIP, ILIT, CRT). Categorizing by type rather than function can create certain expectations ▪ Is the trust revocable or irrevocable? ▪ Is the trust a grantor trust for income tax purposes? ▪ Does the creator of the trust have any retained interest in trust property? ▪ Verify designated trustees and successor trustees are inline with current client wishes ▪ Review distribution provisions to verify they are in line with current client wishes ▪ Review trust for provisions regarding custodial care of minor children
!3 LPL Financial - A Registered Investment Adviser. Member FINRA/SIPC
▪ Review bypass / QTIP provisions for limitations / restrictions to principal (Q-TIP provision, make sure ALL interest in the property subject to the Q-TIP by the spouse terminates at his or her death) ▪ Review for proper use of unified exclusion amounts ▪ Useful provisions to look for include: •
spendthrift provisions,
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the power of the trustee to substitute assets,
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provisions for replacing trustees
▪ Trustee powers should include the broad authority to purchase securities including margin, file tax returns and purchase policies of insurance. ▪ The trustee should be required to purchase a bond o Durable Power of Attorney for Health Care ▪ Verify location of original ▪ All pages received ▪ Duration limited by contract (“This document expires 7 years after execution…”) ▪ Verify designated Attorney-In-Fact is in line with current client wishes & contact info is up to date ▪ Verify alternate agents ▪ Verify client has shared their treatment wished with designated Attorney-In-Fact ▪ Document should be consistent with the living will o Durable Power of Attorney for Finances ▪ Verify location of original ▪ All pages received ▪ Verify type of POA (Springing, Durable, Standard) ▪ Verify designated Attorney-In-Fact is inline with current client wishes & contact info is up to date. ▪ Verify Alternate Agents o Burial Instructions !4 LPL Financial - A Registered Investment Adviser. Member FINRA/SIPC
▪ Verify location of original ▪ All pages received ▪ Verify client’s current wishes are expressed in the instructions
! o Asset Titling and Beneficiary Designations ▪ Verify that all assets are properly titled / have appropriate beneficiary designations. Confirm via the document; do not proceed on the client’s recollection. ▪ Appropriate titling may include •
Trust
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Transfer on Death / Payable on Death
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Community Property
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Joint Tenants with Rights of Survivorship
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Tenancy by the Entirety
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Tenancy in Common
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Sole and Separate Property
▪ Consider the tax implications of all ownership arrangements ▪ Be intimately familiar with the State estate tax or legacy & succession laws of the state you do most of your business in ▪ If you are in a community property state know the particular quirks of your state’s version of community property ▪ Know what statutory protections are in place for IRA’s in your state •
Life, disability and long-term care insurance policy o Regarding in-force Individual Life and Disability policies it is generally best to proceed with the assumption that keeping them is the best thing for the client o Are the policies past the incontestable period? o Owner and beneficiary information o Premium information and benefits o
Inflation riders
o Elimination period, definition of !5 LPL Financial - A Registered Investment Adviser. Member FINRA/SIPC
o Own occupation/Any occupation o Determine guaranteed vs. non-guaranteed benefits
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Annuity statements o Surrender period / Surrender Charges o Pre-Tefra (1982) Contributions
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Last three months of bank and/or money market statements o TODs on individual accounts o Is there consistency in their savings/spending? o ACHs and bill pay established
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Stock options and restricted stock statements o NQSO ▪ Is it possible to gift the NQSO to charity? o ISO ▪ Is their AGI going to cause any issues?
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Deferred compensation arrangements o Plan Document o Who is the “select” group o Name of Administrator o Trust or no trust o Was there ever any DOL filings? o Informally funded or not o Survivor benefits or no o Vesting o Payout ▪ What are qualifying events ▪ Triggers for early withdrawal !6 LPL Financial - A Registered Investment Adviser. Member FINRA/SIPC
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!7 LPL Financial - A Registered Investment Adviser. Member FINRA/SIPC