It’s right up there with going to the dentist, renewing your driver’s license, cleaning out your gutters, or trying to cancel your gym membership.
Let’s face it. Most adults don’t exactly jump at the chance to update their estate planning documents, like their Will, Revocable Trust, or Power of Attorney. It’s easy to understand why. After all, planning for incapacity or death can be difficult to think about, difficult to talk about with our loved ones, and all too easy to put off these uncomfortable discussions for a future date. But the longer you go without reviewing and revising your estate plan, the more likely your documents are to get outdated. And outdated documents could mean that your wishes and intentions of today may not be carried out in the event of your unexpected passing.
Here are three steps to avoid an estate planning “rut” for better outcomes that reflect your current intentions:
Review
Ideally, you would reread your estate documents every 1-2 years to make sure that you understand the gist of your plan: Who’s in charge; who gets what; and how your heirs will receive their bequests. More frequent review is a great idea if you’ve experienced a major event in your life: (re)marriage, a birth or adoption in the family, receiving inheritance or other financial windfall, a new health diagnosis or illness, going through a separation or divorce, or a death in the family.
Working with an advisor can also help you stay on track with a regular estate plan review, and advisors can also alert you to recent income, estate, or gift tax law changes that may make updating your estate plan necessary to achieve your goals. Best case scenario, you review your documents and discover that they’re still aligned with your wishes. More likely, you’ll find something you may want to tweak, revise, remove, or replace. Knowing that you may want to make a change is half the battle.
Update
If your periodic or event-driven review has uncovered a provision in your Will, Trust, or Power of Attorney that no longer serves your needs and goals or there’s a law change that makes an update advisable, then it’s a matter of contacting your attorney. She or he will make the necessary changes and prepare new documents for signature. If you’re working with a financial advisor, she or he can help you prepare for those meetings and talk through some options.
Talk
On the topic of talking through options, communicating your broad intentions, wishes, and decisions ahead of time is critically important to produce ideal outcomes, avoid hurt feelings, and prevent family conflicts. Both your heirs (children, grandchildren, family, friends) and your fiduciaries (Executor, Trustee, Power of Attorney Agent) need to hear what’s in your heart directly from you. After all, a Will, Trust, or Power of Attorney document is a legal set of instructions, not a personal or sentimental writing. Don’t leave these people in the dark! We suggest writing your loved ones a letter outlining your hopes, wishes, concerns, and lessons you’ve learned so that your words and spirit accompany your generous bequest.
When you commit to a regular cycle of Review, Update, Talk, you’ll avoid the dreaded estate planning “rut,” which will help ensure that your wishes are carried out and give your heirs and fiduciaries a better understanding of your intentions. Remember, you don’t have to go it alone! Though your financial advisor at Foster Group can’t help you with your dentist appointment, license renewal, or gutter cleaning, we’re ready to help you start and stick to a consistent estate planning routine. Truly caring for you means taking the time to learn what’s on your heart and to help you pursue your goals. Connect with us today to learn more.
