Do you have an Estate Plan or will the State plan for you?

An estate plan is not something to consider only at the end of the road but all along your walk through life.

Only 32% of Americans have an estate plan in place, which leaves the other 68% at the mercy of the state courts to decide how to allocate their assets.

Here are five quick questions to help you determine the health of your estate plan.

1) Do you have an estate plan?

Whether a simple will or living trust, have you taken the steps to ensure your loved ones are taken care of in the event of your untimely passing? It is never fun to think about your life coming to an end but it should be more stressful to fear the unpredictable outcome that might come from the state probate court. If you currently have no estate plan, please stop reading and contact us to help you find a qualified estate attorney in your area.

2) Who prepared the estate plan?

While there is a proliferation of online estate planning products, we highly recommend using an attorney who specializes in estate planning. As each situation is different, a specialist can help guide you through the steps to ensure your plan is valid and workable. You also want a specialist to help guide your loved ones through the process of executing the estate plan when that unfortunate time comes.

3) Has your family been involved in the estate plan’s development?

The only two things certain in life are death and taxes. Both should be discussed with your family when developing a plan. While fear and uncertainty can cloud this conversation, a good advisor and attorney can help you navigate this discussion. The biggest threat to wealth preservation and legacy is poor communication, so be up front with your loved ones regarding your wishes and expectations.

4) When was the last time you reviewed your estate plan?

Just like your life, your estate plan is an ever-changing document. Do not make the mistake of getting the plan completed, setting it on the shelf and crossing it off the to-do list. Here are some major life events that necessitate the review of your estate plan:

  • Marriage (yours and your loved ones)

  • Birth (of children and grand-children)

  • Divorce (hopefully not yours)

  • Death (to be avoided but it happens eventually)

  • Career Change or Retirement

  • Business Sale or Relocation

  • Tax law change

5) Is the estate plan you built properly implemented and funded?

Creating the estate plan is only the first step in the process. Michael Jackson famously had an amazing estate plan but nothing had been executed correctly so it was worthless. Here are some common errors to avoid:

  • Establishing a living revocable trust but failing to title assets correctly

  • Leaving important documents like wills, trusts and powers of attorney in draft form

  • Failing to update beneficiary designations on retirement accounts or life insurance

  • Not properly vetting or considering who you name as executor of your estate

The follow through on details related to your estate plan are critical to a successful plan.

 

Congratulation to those of you who have correctly answered all five questions. If you are concerned about your answers, please reach out to see how we can help you resolve any of your concerns.

Jeff Gullickson