You’ve drawn up wills. You have Power of Attorney assigned. You may even have trust documents. You’re all set and don’t need to do any more planning, right?
Not necessarily. If the uncertainty of the estate tax laws (set to expire this year unless Congress acts to repeal or change it -again) teaches us anything, it should be that estate planning is not a one step task. Estate planning is a continuous process. This process is complicated by the changing laws, but also by the messy and emotional world that we live in. A world of estranged family members, multiple marriages, and emotional attachment to assets. What makes most sense on paper may not translate well in real life situations.
More second and even third marriages are happening. When you signed the divorce papers, did you also change the beneficiary designation on your life insurance policy? Did you know that in some circumstances, a divorced spouse can claim social security benefits?
Improvement in healthcare has blessed us with longevity and better quality of life but it comes with new challenges. Parents are outliving children. “Do not rescusitate” decisions are not as clear cut anymore, as newer and better technology is discovered.
In addition to these challenges, our lives are changing at a faster pace now. People are moving more often. Sure, it’s easy enough to tweet your best friend living in another state, but is he really the best candidate for trustee over children he hasn’t seen in several years?
The heart of estate planning comes down to some basics goals. You need to plan for your incapacity, decide to whom and when to distribute your assets and address how to provide for your dependents. However, these goals require some difficult decisions to be made and various complex issues to be reviewed. Get your documents reviewed and ensure that it is up to date with the most current estate laws AND with your current situation in life.