Is it time to review your estate plan?

When did you last review your estate plan?  How long ago did you put in place your estate plan?  5 years? 10 years?  Over 10 years?  Do you currently have an estate plan in place?

 

Reviewing one's estate plan serves at least two critical functions.  First, a review can guarantee your plan still functions according to your wishes.  All these questions can be answered by comprehensively reviewing your estate plan:

·         Do your assets still go to who you want?

·         Are the correct people listed in decision-making roles?

·         Have your desires changed for who you want to receive your assets?

·         Have certain decision-makers moved away?

·         Have minor children now become responsible adults who are ready to serve on your behalf?

Secondly, a review can alert you to new laws affecting your estate plan?  An example from a few years ago would be the changes regarding access to medical records with the Health Insurance Portability and Accountability Act (HIPAA).  A more recent example is the 2017 Tax Cuts and Jobs Act, which changed estate and gift taxation rules.  Whether it is the State Legislature or Congress, both organizations continue to pass laws to meet changing circumstances.  Staying up-to-date can mean the difference between a plan accomplishing your goals and a plan that causes unneeded problems and headaches.

For all our clients, we offer complimentary reviews every 3 years.  For clients, it is a chance to review their estate plan to ensure everything is current and there are no major changes requiring updates due to the passage of new laws.  For us, it is a chance to talk with clients and ensure their estate plan continues to meet their objectives.

If you have not put in place any estate planning documents, you are not alone.  In fact, you are in the majority!  Shocking numbers indicate that over 50% of people pass away with no estate planning documents in place.  https://www.usatoday.com/story/money/personalfinance/2015/07/11/estate-plan-will/71270548/  This often leads to countless hours, disputes, and unnecessary stress on loved ones who are dealing with your passing. 

Whether you worked with us in the past or wish to work with us in the future, give us a call today or send us an e-mail by clicking here!  We are always happy to assist individuals, businesses, and families, plan for a smooth and seamless future!

Protecting Your Minor Children from the Unexpected

Parents often cite a child’s birth as one of the happiest days of their life.  The child will bring many moments of happiness to your lives and undoubtedly a few trying moments, too.  However, as parents, you also need to consider who would care for your child if you no longer can.  Estate planning can offer some valuable assistance.

A simple will executed by each parent is a common method used to protect minor children.  A will is the only legal avenue (without court intervention) where parents can nominate a legal guardian for children under 18.

So, who should you nominate as a guardian?  Beyond recommending someone you trust and respect, here are some other factors to consider:

·         Guardian’s Location—Will a guardian’s location require a change of schools for your children; will the location allow your children to remain close to existing friends and family?

·         Guardian’s Values—Does the guardian share your core beliefs, a similar philosophy in raising children, religious views, etc.?

·         Guardian’s Suitability—If a guardian has children of their own, could they care for your children too; does the child already have a good relationship with the prospective guardian?

Once a guardian is chosen, the next question is how financial assets should be held to best benefit your children.  A testamentary trust, formed in a parent’s will, is a great tool to hold such assets.

This type of trust secures assets left for your children and can specify an age or ages for asset distribution.  Many parents distribute a percentage of a child’s share every few years, minimizing potential excessive spending of an inheritance at one time.  Without a testamentary trust, all assets are distributed when the child is no longer a minor.  To oversee this trust, you may nominate the above-named guardian, a financial institution, or an entirely different person/entity.

Protections for younger children are absolutely vital. Whether that means completion of a simple will or other estate planning options, this issue deserves consideration by you and your family.