You can spend your entire life building up wealth. How long will you spend planning what will happen after you pass?
A recent Consumer Reports survey reveals that 86% of people haven’t reviewed or updated their estate documents in the past five years. The law and your assets can change greatly during that time period. Here are five areas that need yearly review:
Asset Titles: The most important part of planning is how your assets are titled. If your assets aren’t titled properly(and kept up to date), your estate plan will not work and the documents are worthless.
Wills and Trusts: These documents empower you to say who will receive your assets and who will be responsible for making sure your directions are followed. Life is always changing! Your trusts and will should mirror those changes. Divorce, family conflict, having new children: all of these life events are reason to review your estate plan so you can be sure it will work when it’s needed.
Healthcare Directive: In case you are unable to make decisions about your own health care, this document establishes someone to serve as your agent. Many people forget to check if the original person is still willing and able to serve. Do you have a back-up if for some reason your first choice cannot perform their duties?
Financial Power of Attorney: This individual will handle finances for you in cases where you are unable to, and a back-up alternate should be named as well. For senior citizens with multiple bank and brokerage accounts, consolidation may make financial management easier.
Guardian Nominations: As children get older, the folks you designated to raise them may not fit anymore. It is an ABSOLUTE necessity to have named guardians so your children are NEVER taken into protective custody by strangers.
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If you would like to create or update your estate plan, call our office today to schedule time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.
