As ever, the turning of the calendar means it’s time to do an annual Estate Planning Checkup. Here are some key questions to ask in order to make sure estate plans are up to date.
1. Have you reviewed your estate plan recently? Life changes fast sometimes, and you want to make sure your clients’ estate plans reflect their latest wishes. Make sure they’ve taken a look at their estate plan and ensured that it aligns with their desires for the future.
2. Do you need to update your beneficiaries? Intended beneficiaries change for all sorts of reasons. People get married. They have kids. They get divorced. Sometimes, they simply demonstrate that they’re incapable of managing money. Whatever the reason, if you or your client is ready to change beneficiaries, this is a great time to do it.
3. Have your assets changed significantly? You or your client have a plan in place, but if the assets have changed significantly since that plan was formed, it might need to be updated to account for taxes or provide for additional beneficiaries or charities.
4. Did you move to a new state? An interstate move can affect your client’s estate plan, especially your power of attorney. A change in residency is a great reason to review everything in closer detail.
5. Did you start any new business ventures? Any new business needs may need to have a succession plan in place. Without it, your heirs or business partners could be left in an uncomfortable situation without a prearranged plan for a change in ownership.
6. Have we reviewed your estate plan within the last 5 years? Planning professionals recommend that attorneys and their clients meet for a full review of estate plans at least once every five years. Goals, priorities, and people all change — if you haven’t reviewed your estate plan from top to bottom recently, now is the time.
7. Who are your decision-makers? Ask your client to review important decision-makers, like who will manage your assets after you are not able to do so and who has power of attorney if you are temporarily incapacitated. Make sure these are still people your client trusts to act in their best interest.
8. Where are your original powers of attorney, and are they up to date? Along with reviewing decision-makers, make sure your client has the right paperwork in place to name decision-makers for health care and financial decisions, and that these documents are up to date and stored securely.
9. Have you made a list addressing the disposition of any personal property? Sometimes families argue over sentimental items even when there is little monetary value. Addressing this upfront can help them sort out any issues after a death.
10. Have you discussed your estate plan with your family? 90% of families lose their wealth by the third generation. Make sure your client has discussed their legacy goals with their family and that they have a plan for preserving their wealth for future generations, if that is their wish.
