MSU Extension Office: When is Your Contingency Day?

This is part of a monthly series of estate and legacy planning articles. Authors are Kaleena Miller, Madison-Jefferson County Extension Agent, kaleena.miller1@montana.edu and Marsha Goetting, MSU Extension Family Economics Specialist, goetting@montana.edu.

Anniversaries are for celebrating special occasions. An anniversary could also be designated as a “Contingency Day,” a time for couples to re-examine their financial lives and their legacy plans for their survivors. Whom have you left your assets to after you are gone? Are those the people you still want to leave property to, or are there new people you want to recognize in your life?

Marsha Goetting, MSU Extension family economics specialist, suggests that your contingency day occur at least once a year. Select an occasion that works for you – on an anniversary, birthday, or other easy-to-remember date.

“Start with a review of the location of your financial papers, such as insurance policies and investment information,” Goetting suggested. “Next, review the beneficiary designations on your insurance policies. Be sure you have named a contingent beneficiary in case the primary beneficiary dies before you or with you.”

Do you want to place a payable-on-death beneficiary designation on your checking and savings accounts to avoid probate costs? This is quite easy to do. Go to your financial institute and tell them you want to place a POD on each account.

Do you also want to make transfer-on-death registrations for your investments to avoid probate of those assets? Contact your broker for the appropriate form. If you have a mutual fund, search the company’s website for a beneficiary registration form.

The Montana legislature has passed a statute called a transfer-on-death deed that can be used for real property. In other words, you can file the form with the clerk and recorder in the county where the land or home is located and avoid probate on real estate with a TODD. Remember, PODs, TODs, and TODDs avoid the expense of probate.

The Montana legislature has passed another statute that allows for passing a vehicle or vessel with the MV13 form. Manufactured homes and mobile homes are included in this category.

Other items couples should discuss include whether all their financial accounts have secondary beneficiaries in case the primary beneficiary passes away before the couple does. Do both individuals understand their filing systems? If asked, could either one find their homeowner’s insurance policy, deed, or title to the house?

What is the location of the will or trust? If circumstances have changed since the last contingency day, should the will or trust be updated, and how? questioned Kaleena Miller, Madison-Jefferson County Extension Agent.

“Many of us still say ‘if I die’ rather than ‘when I die.’ Facing death may be difficult for most of us, but we are all on the same boat; we all are going to die sometime.” Goetting said. “The brave thing to do is to prepare so your surviving partner has the necessary information at hand to settle your estate and be financially secure.”

MSU has two MontGuides that may be helpful “Estate Planning: Getting started and “letter of Last Instruction” can be found at https://www.montana.edu/estateplanning/eppublications.html For those who do not have computer access, copies are available from the Madison-Jefferson County Extension office at 287-3282.