Questions to Ask Yourself about Your Estate Plan

It is important that you update your estate plan every few years or when a significant life event happens such as: marriage, divorce, birth, adoption, death, relocation, or the sale of a business or real estate.

Despite the consequences we have all seen after two years of a global pandemic, about half of all American adults still don’t have a will.

If you do have a will or, better yet, a comprehensive estate plan, here are some questions to ask yourself as you review your estate plan:

Do you have the same relationship now as you did years ago when you named your executor? Does the person still live near you and are they still willing to serve in this important role?

Your executor does not have to live right down the street, but if you are in Illinois and moved to Arizona, some tasks may become more troublesome. The executor needs to liquidate accounts, oversee selling your assets – which could include a home – pay final taxes, and pay estate taxes.

Who Is The Guardian for Your Minor Children? 

While the same relative would have been a great guardian when your children were four, seven, and ten, they may not be interested in taking responsibility for three teenagers. There are grandparents who adore their grandchildren, but they may not be able to manage the storms of adolescence.

Consider who would best manage your children right now and make the necessary changes. Before naming a couple as guardians, ask yourself if you want the survivor as guardian if one spouse dies? Please do not neglect to add a second or even a third name for a guardian to avoid any chance of your children ending up in the foster care system. This can be an unfortunate reality due to oversight in estate plans.

Is Your Power of Attorney Up To Date? 

If you can agree with the idea that your life has become more complicated over the years, the same Power of Attorney (POA) form from ten years ago could lead to trouble for your estate and your heirs.

If you have a business that will need to be sold, property in multiple states, or need to plan for a catastrophic illness, a standard POA form is not adequate for all your needs. You can avoid these problems and prevent the need for a guardianship proceeding through a custom drafted POA.

Financial institutions will often refuse to accept general POAs, especially if they are outdated. It would be greatly beneficial to check in with your bank and financial advisor to see if they have their own POA forms.

These forms can help you by supplementing your general POA but only applying to that bank. Because the bank knows nothing about how your estate plan works, you should protect it with a POA suited for your unique situation.

Does Your Estate Plan Include Trusts? 

Trusts are legal entities used to hold assets on behalf of beneficiaries. A Medicaid Asset Protection Trust is used to protect assets from being countable to qualify for Medicaid.

An Irrevocable Trust is often used to remove assets from your taxable estate. It also provides directions on how trust assets can be used and when they should be distributed. A revocable trust can be used during a person’s lifetime while allowing the person to maintain control over the trust.

A Tip About Trusts

The kind of trust you need depends upon your situation. This document should be created with your family in mind by an experienced estate planning attorney.

An example of this could be if you established a trust specifically to fund your grandchild’s college education, but they are now eighteen and have decided not to pursue an undergraduate degree. Do you still want them to have access to the funds? Or would you like the funds to go to another grandchild, one headed for a program requiring a post-graduate degree?

Our estate planning attorneys have seen the various situations that occur, and we will help create a trust with some flexibility for the future, or one that can be revised as needed.

Interested in Working With Us?

If you need any help regarding your estate or other legal matters please reach out to us directly here and schedule a call with one of our paralegals on our scheduling page here.