Today we reprise a New Year's blog
from 2015 because we feel that it is important that planners and clients add a
commitment to review and update their estate planning to their list of New
Year's resolutions.
The importance of this resolution
really struck home with me when I reviewed my own estate planning on New Year's
Day and realized there were changes I wanted to make even though the most
recent revision had occurred less than two years ago.
Our message from that 2015 blog continues to
be relevant:
"While we all have full lives
that often get in the way of planning, the beginning of a new year is a great
time for our clients, friends, and me, to make a resolution to review or
consider estate planning. It is
particularly important to:
1. Review
estate planning documents especially if they have not been updated in the last
two or three years. If you have no documents, it is time to consider getting
them. Pay special attention should be paid to:
a. Guardians
named to care for minors in the event both parents pass away. If you have
previously named guardians, are these still the people you trust?
b. Distribution
provisions for children and grandchildren --when should they receive money and
how much?
c. People
named to act as trustees and personal representatives after your death to
protect your children and other loved ones. Are those people you named to
administer your trust and estate still the ones you want to accept that
responsibility?
d. People
named to make legal and medical decisions under your Durable Power Of Attorney
and Patient Advocate Designation, in the event you become incapacitated. If you
have previously named people, are they still able, and willing, to make these
decisions on your behalf?
2. Review
how you titled your assets to confirm you can avoid the high cost, time delays
and public exposure of probate under Michigan law at your death.
3. Inventory
your assets, so that a complete list is available for your administrators in
the event of a sudden death.
4. Consider
making a list of personal property designations, so that items you value can go
to the desired beneficiaries.
5. Consider
making a list of important people and contact information, such as your
attorney, accountant, financial planner, or investment advisor, to save your
family time and aggravation.
6. If
you have any particular desires, write a letter indicating your personal burial
preferences, so your loved ones will know how to handle arrangements at your
death.
7. Consider
starting Section 529 education accounts for your children or grandchildren so
the funds can grow tax-deferred, and be distributed tax-free, to the extent
they are used for higher education.
8. For
those of you with unmarried children over the age of 18, encourage them to
execute their own patient advocate designations and durable powers of attorney
so that if something were to happen to them, decisions can be made without
involving the probate court.
Like all of our other resolutions,
these may be hard to keep but, if completed, can provide us peace of mind that
if the unexpected occurs, our loved ones will be prepared to deal with whatever
comes their way."
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