Like most of us, the uncertainty of current events may have you concerned about whether you are properly prepared for the future. Do you have an estate plan? If so, when was the last time you reviewed it? If it has been more than five years, or there have been any changes in your life, a review is warranted.
If for no other reason, a review will protect those you love from the unintended consequences of outdated documents that may no longer reflect your wishes. If you don’t already have an estate plan, I encourage you to use this article as a helpful starting point. We all need an up-to-date plan in order to ensure that our loved ones and favorite charitable organizations like Fairfield will be provided for in the manner we intend.
Reviewing your will or trust
There are several aspects of your will or trust that require your scrutiny when doing your review.
Family situations.
Marriage, divorce, birth, or death can require a substantial change to an estate plan. Family members who should be included may not be, and others who are in the estate plan perhaps should no longer be.
Financial situation.
An entire estate plan can be upended if there has been a change in assets or where the assets are held and how they are titled. If you have designated specific assets to go to certain family members but you no longer own those assets, your plan is likely outdated. If a house was to go to one family member but that house has been sold you may wish to make an alternate provision.
State of residence.
The state of your residence controls the legal requirements for estate planning documents. If you have moved to another state since your current set of documents were written, a review by a local attorney is recommended for compliance with the laws of your new state.
Health issues.
Health issues of loved ones may determine if you need to revise an estate plan. Addictions, mental disabilities, or the onset of dementia may necessitate that a trust be established so that the assets received are prudently managed and not subject to fraudulent conduct. If a family member has gone on Medicaid, a special needs trust may be appropriate so that federal or state benefits are not jeopardized.
Tax laws.
Any review of estate planning documents should include how the plan addresses current estate tax laws. If you are including charitable gifts as part of your plan there are certain assets that, if left to charity, can result in your heirs possibly saving on taxes.
Reviewing other documents
A comprehensive review of an estate plan includes updating or creating documents that appoint an individual to handle your financial affairs if you are unable (a financial power of attorney) and an individual to make medical decisions should you be unable (a medical power of attorney). Also make sure your beneficiary designations are up to date on all gifts of retirement assets, life insurance proceeds, commercial annuities, bank accounts, investment accounts and any other assets that are transferred outside of your will.
You can then rest assured that your updated plan will protect your family and ensure that your assets end up with those you wish to have them. Please contact me if I can be of any assistance as you review, or begin to craft, your estate plan. I am always happy to serve as a resource for you.
