Estate Planning Checkup

We periodically get medical checkups to make sure we are physically healthy. It also is a good idea periodically to have an estate planning checkup to make sure your estate plan is in good shape. We often use the following checklist to help our clients review their plans.

• When was the last time your estate plan documents were reviewed and updated?
• Have there been any changes in federal or state law that will affect your documents?
• Have there been any changes in your personal situation requiring any changes, such as:
• an increase in your net worth
• a divorce, death, or remarriage
• children growing older and requiring less or more supervision of assets at your death
• the birth of grandchildren you want to protect
• special needs beneficiaries, including beneficiaries with substance abuse issues needing protection
• concern about a child's marriage
• elderly parents or other relatives now needing assistance
• charitable gifts you desire to make
• Are you still comfortable with the people you have designated to be guardians for any minor children?
• Are you still comfortable with the people you have designated to make legal and medical decisions if you become incapacitated?
• Are all of your personal assets properly titled and funded to your Trust to avoid probate?
• Are all of your business assets properly titled and funded to your Trust to avoid probate
• Have you purchased any new personal or business assets recently, and are they properly funded to your Trust?
• Are the beneficiary designations for any life insurance on your life appropriately designated to your Trust?
• Are the beneficiary designations for any retirement plan accounts and IRAs appropriately designated to your spouse and/or your trust?
• If you have executed an Irrevocable Trust to hold life insurance have you:
• properly gifted funds to the Trust annually for premium payments?
• properly prepared and documented Crummey notices annually
• has the trustee periodically reviewed the appropriateness of the insurance policy and regularly reviewed and updated life insurance as appropriate?

     If the answers to any of these questions cause your client's concern or if they are unable to answer any of these questions, you know it is time to suggest they visit their estate planning professional to discuss and possibly change estate planning documents.

Alan Ferrara