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Life Changes

Wondering Whether You Need to Update Your Estate Plan?

December 13, 2022 By Gratia P. Schoemakers, Esq. Leave a Comment

Yes, You Do, and Here’s Why

Please allow us to be frank. It’s unrealistic to think that a piece of paper you draft, reflecting your life at a certain time, will work when your life has completely changed some years later. We’ll use the Kendrick family as an example.

Meet the Kendricks

Update Estate Plan

Meet Bill and Karen Kendrick. They got their first estate plan in place when their daughter, Jessica, was born 30 years ago. They updated it when their son Steve came along 4 years later. After attending one of our living trust seminars 10 years ago, they got a fantastic trust-based plan in place, protecting themselves, their children, their grandchildren, and their dog, Sadie.

Unfortunately, the Kendricks didn’t join our client maintenance program; instead, they elected to take responsibility for calling us for updates themselves. Life got busy and, as you might guess, they never called to update their documents.

Here’s what’s changed in their lives in the last 10 years.

  • Jessica and Steve are now adults and have graduated from college.
  • Jessica is married and has two daughters. One of the girls may have autism.
  • Steve is also married, and he and his wife are expecting their first child.
  • Karen’s mother is now living with Bill and Karen.
  • Bill and Karen bought a vacation home in Florida.
  • Sadie had a litter of puppies but has since passed away.  Bill and Karen kept two of the puppies.

Do you think their estate plan will still work the way they want it to?

Changes in Your Own Life

The Kendricks have experienced a lot of changes, but those changes are typical of what 10 years brings. Think about the changes in your life over the past 10 years — or since you last updated your estate plan.

Have you moved? Do you have more children or grandchildren? Have you started a business, suffered health problems, or purchased a new home? Do you have new accounts and investments? Do you now care for a parent, pets, or dependent children? Have you remarried, gotten divorced, or retired? Has someone you loved died? Have friends or family named in your plan as trusted helpers moved away, or has your relationship changed? Are your children now adults and able to help you? Do you want to help with grandchildren’s college or dance lessons? Do you see the world in a different way?

Many things have happened in the past 10 years. Your estate plan needs to reflect the changes in your personal life, financial situation, and goals. There have also been changes in the law. We stay abreast of these changes to protect our clients in better and better ways, so the way we do things has changed.

Is Your Estate Plan Out of Date?

If you’ve experienced changes like the Kendricks, or it’s been more than 3 to 5 years since you updated your estate plan, it’s time to come in. We’ll review your plan and chat with you about what’s been happening in your life. We can get you and your estate plan up to date, reflecting where your life is now.

Filed Under: Estate Planning Tagged With: EP Update, Estate Plan, Life Changes, Update

Big “Life Changes” Often Mean Big “Estate Plan Changes”

August 29, 2022 By Gratia P. Schoemakers, Esq. Leave a Comment

Many people who put together an estate plan do so when they start a family – assuming they put an estate plan together at all during their lifetime. While putting an estate plan together is a good thing to do, many people make few updates once the plan has been created, despite other key life events happening over the years. This is a major mistake that can place your hard-earned money and assets into a costly probate or into the wrong hands. To make sure you do not run into these issues and your wishes are followed in the event of your death or incapacity, below are nine life decisions or events that should get you thinking about updating — or creating — your estate plan right away.

Important Life Decisions

There are several important life decisions that you should factor into your estate plan. They include:

Big Life Changes Estate
  • Getting married: Estate planning after tying the knot does not have to be complicated. Simply updating your beneficiary information, purchasing a life insurance policy, and updating emergency contact information are all things that should happen right away. You should also consider preparing a will and a living will. As your marriage progresses, it may make sense to consider a revocable trust as well. Having discussions with your spouse about how you want your estate to be managed depending on different scenarios is also important.
  • Getting divorced: While couples do not plan for divorce, many spouses go through this process. For many, the emotional toll and legal complexities of divorce can be overwhelming. Oftentimes estate planning is overshadowed by the divorce, resulting in unintended consequences. Making sure you make changes to your estate plan as soon as your divorce proceedings have been finalized will make sure your ex will not end up with the house, life insurance proceeds or other assets of yours.
  • Buying life insurance:  These policies are present in virtually all estate plans and serve as a useful source of liquidity, education-expense coverage, and financial support for your family or loved ones. Make sure to list all beneficiaries under the policy and make sure to update them as time passes.
  • Buying a new home: When you purchase or refinance a home or other real estate, you should always make sure the asset is titled appropriately. If you use a trust, sometimes a lender will take a property out of a trust during a refinance. The key is to make sure your title furthers your goals.
  • Having a child: While adding another member to your family is an exciting time in your life, it is not an excuse to forget to update your estate plan. A new child necessitates major revisions to your estate plan. This not only affects who will inherit your estate upon your death but will also require you deciding who will be the guardian of your children if you should die before they become adults. As your child grows and matures — and more children are added — your estate plan will likely continue to change.
  • Starting a business: If you start a business or ownership interest changes in a current business, you need to understand what impact these changes have on your estate plan. Even more, there may be tax implications that could affect your heirs without proper planning ahead of time.
  • Death of a loved one: The passing away of someone listed in your will is often overlooked in estate planning. These individuals may be named guardians to your children, have an inheritance allocated to them, be designated as emergency contacts, or may be named as executors of your estate. Leaving the role vacant can have terrible unintended consequences and necessitates transitioning new people to fill the void left behind by your loved one’s death right away.
  • Moving to another state or country: When you change your residency from one state to another, you must review your estate plan to make sure it conforms with local laws. The same is true if you move to another country. Likewise, if you have property in more than one state or country, special attention must be paid to how those assets will be distributed according to your estate plan and applicable law.
  • Change in work benefits: Whether this happened through a promotion, demotion, or your employer just changed the benefits they offer, this could impact the type of amount of assets you have available. Look at your estate plan to see if your goals are still achievable or if you can do more with what you have.

Estate Planning Advice

Planning based on your life stages is important because your circumstances over the years will surely change. If you have any questions about estate planning — or have had to make a recent big decision in your life — contact us to learn more about your options.

Filed Under: Estate Planning Tagged With: EP Update, Estate Plan, Life Changes, Update

Your Post-Honeymoon Legal Checklist

June 27, 2022 By Gratia P. Schoemakers, Esq. Leave a Comment

Your wedding is over, and the day was absolutely perfect.  You went away on your honeymoon with your new spouse and had the time of your lives.  Now you are back and can breathe a sigh of relief and watch the rest of the years ahead unfold before your eyes.  Well, not so fast.  Now that your honeymoon is over, there are several things you should be mindful of to make sure that the legal and financial parts of your life properly reflect your newly married status.

What To Do After the Honeymoon

post honeymoon checklist

As you start living happily ever after, make sure to attend to these post-honeymoon to-dos during the first few days (or even weeks) after your wedding.  This will help you enjoy the memories of your wedding and honeymoon for years to come.  The following checklist can serve as a reminder of some, but not all, of the tasks to which you should give your immediate attention:

In addition to the above, if you decide to legally change your name make sure to notify the following institutions:

  • Meet with a knowledgeable estate planning attorney to discuss the creation of a will or trust, or to update one from before you got married;
  • Review and update your medical proxy documents and provide copies to your necessary doctors’ offices;
  • Check and update beneficiary designations on any life insurance policies, 401(k)s, IRAs, annuities, and other investment accounts;
  • Seek advice from your tax preparer about whether or not you should adjust your with holdings to reflect your new marital status;
  • Obtain life insurance, if you do not already have coverage, and designate a beneficiary and a contingent beneficiary;
  • If you have or are planning to move, notify your auto insurer, banks, employer, and anyone else of your new address;
  • Add your spouse to your group health and/or dental insurance policy, if necessary; and
  • Change ownership of real property, if you choose to, to reflect your marital status;
  • Schools;
  • Employer(s);
  • Department of Motor Vehicles;
  • Creditors and debtors;
  • Social Security Administration;
  • Passport office;
  • Insurance agencies;
  • State taxing authorities;
  • Telephone and utility companies;
  • Banks and financial institutions;
  • Government benefit office.

Contact an Experienced Estate Planning Attorney

We are here to help guide you through the estate planning process and to make sure that the financial and legal aspects of your life correctly match your new marital status. Call or contact us today to learn about how we can help you enjoy your wedded bliss with financial and legal security.

Filed Under: Estate Planning, Post Honeymoon Tagged With: Checklist, EP Update, Estate Plan, Life Changes, Spouse, Update

Is Your Estate Plan as Stale as Last Week’s Ham Sandwich? 5 Reasons to Update Your Estate Plan

June 14, 2022 By Gratia P. Schoemakers, Esq. Leave a Comment

Estate plans are almost magical: They allow you to maintain control of your assets yet protect you should you become incapacitated.  They take care of your family and pets.  And, if carefully crafted, they reduce fees, taxes, stress, and time delays.  Estate plans can even keep your family and financial affairs private.  But one thing estate plans can’t do is update themselves.

Estate plans are written to reflect your situation at a specific point in time.  While they have some flexibility, the bottom line is that our lives continually change and unfold in ways we might not have ever anticipated.  Your plan needs to reflect those changes.  If not, it will be as stale as last week’s ham sandwich and may fail miserably when needed the most.

Estate Planning

If anything in the following 5 categories has occurred in your life since you signed your estate planning documents, call us now to schedule a meeting.  We’ll get you in ASAP to make sure you and your family are still protected.

  1. Marriage, Divorce, Death. Marriage, remarriage, divorce, and death all require substantial changes to an estate plan.  Think of all the roles a spouse plays in our lives.  We’ll need to evaluate beneficiaries, trustees, successor trustees, executors/personal representatives, and agents under powers of attorney.
  2. Change in Financial Status.  A substantial change in financial status – positive or negative – generally requires an estate plan update.  These changes can be the result of launching, winding down, or selling a business; business and professional success; filing bankruptcy; suffering a medical crisis; retiring; receiving an inheritance; or even winning the lottery.
  3. Birth, Adoption, or Death of a Child / Grandchild. The birth or adoption of a child or grandchild may call for the creation of gifting trusts, 529 education plans, gifting plans, and UGMA / UTMA (Uniform Gifts to Minors Act / Uniform Transfers to Minors Act) accounts.  We’ll also need to reevaluate beneficiaries, trustees, successor trustees, executors/personal representatives, and agents under powers of attorney.
  4. Change in Circumstances. Circumstances change.  It’s a fact of life – and when you’re the beneficiary or fiduciary of an estate plan, those changes may warrant revisions to the plan.  Common examples include:
    Children and grandchildren attain adulthood and are able to serve in trusted helper roles (successor trustee, executor/personal representative, and agent under powers of attorney)
    • Relationships change and different trusted helpers need to be named
    • Beneficiaries or trusted helpers develop overspending or drug / gambling habits
    • Guardians, executors, or trustees are no longer able (or no longer wish) to serve in their previously assigned roles
    • Beneficiaries become disabled and need a special needs trust to receive government benefits
    • Guardians for minor children divorce, move to a new state, or are otherwise no longer appropriate to serve
  5. Changes in Venue.  Moving from one state to another always warrants an estate plan review, as states’ laws differ.  Changes may be needed to ensure that you’re taking full advantage of – and not being penalized by – your new state’s laws.  This is also true when purchasing a second home outside of your state.

Estate Plans Are Created to Help, Not Hurt, You

Old estate plans get stale just like old sandwiches do.  You wouldn’t rely on last week’s ham sandwich for lunch; please don’t rely on your estate plan from yesteryear.  If you’ve experienced any of the changes we’ve mentioned in this article, call or contact us today.  We’ll review your estate plan and make sure you and your loved ones are protected.

Filed Under: Estate Planning Tagged With: EP Update, Estate Plan, Life Changes, Update

What to Do When Your Doctor Says to “Get Your Affairs in Order”

June 18, 2019 By Gratia P. Schoemakers, Esq.

Five words no one ever wants to hear from their doctor: “Get your affairs in order.” Unfortunately, 58 percent of Americans do not have a will or trust, and it often requires a chronic disease or terminal illness diagnosis, or other life-changing event to prompt the estate planning process. Talk to your attorney about completing the documents below and follow these tips to protect your future and make the circumstances easier for your loved ones.

Living Will

A living will sets forth your wishes for what medical treatments you do or do not want; it eases the burden on loved ones who may otherwise have to guess at your preferences. This document may contain “do not resuscitate” (DNR) or “do not intubate” (DNI) orders, or those directives may be contained in a separate standalone document.

Power of Attorney for Healthcare

A power of attorney for healthcare designates a person or persons to make healthcare decisions on your behalf when you are not able to. Discuss your views on medical treatments and life-saving measures with these individuals and any loved ones, so they fully understand the decisions you may be asking them to make.

Financial Power of Attorney

A financial power of attorney authorizes the named individual to carry out certain financial matters on your behalf. Be advised that your bank or investment institution may have their own separate, required forms. If so, you will need to complete this paperwork as well.

Will

In the simplest terms, a will is a statement directing how you want your assets handled when you die. You will need to designate a personal representative to execute the instructions in your will and identify assets and their recipients. Homes, cars, and financial accounts are some of the assets you will need to address. Make sure to account for digital assets like email, social media accounts, or online trading accounts and cryptocurrency. Some states allow for the inclusion of a personal property memorandum that lists your personal possessions and designates the recipients. One benefit of this memorandum is that you can update this document without having to return to your attorney to change your will.

A will can also name a guardian for your minor children. Without this document in place, a judge may determine who cares for your children after you pass. According to Caring.com, only 36 percent of parents with minor children have a will.

Trust

A trust is a mechanism that allows you to pass assets to a beneficiary and avoid the probate process. It also allows for the management of your assets while you are incapacitated. This tool allows you to control who receives your assets as well as when your beneficiaries can access assets. A third party, known as a trustee, manages the assets on your behalf.

In addition to making sure you have the basic estate planning documents prepared, there are a few other steps you can take to ensure that your family’s future will be secure.

  • Consider drafting a separate letter detailing any specific wishes for raising your children. This can allow you the opportunity to share the hopes and dreams that you have for your children and offer guidance about any assets that are left to them.
  • Gather important documents. Distribute copies to trusted loved ones and your attorney. Important documents may include: your social security card, birth certificate, tax returns, insurance policies (life, health, car, home), bank accounts, mortgage agreement, car title, pension and retirement plans, property titles or deeds, will, trust, investment portfolios, advance directives, contact information for estate planning attorney and accountant, marriage certificate, and utility account information.
  • Do not overlook planning for digital assets. Digital assets like email, Amazon, PayPal, social media accounts or a business website all have different policies on how they handle accounts after death.
  • Consider making funeral or memorial plans ahead of time and accounting for the costs, since funerals can be expensive.
  • Check beneficiaries on retirement plans and insurance policies. These assets have designated beneficiaries, and they are generally not transferred through a will or trust, so ensure your beneficiary designations accurately reflect your intentions.

Facing a chronic or terminal illness diagnosis is overwhelming. We are here to help you reclaim control by assisting you in carefully crafting an estate plan. These efforts will help to ensure that people follow your intentions and to lighten the load on your loved ones.

Give us a call or contact us today, we are here to help.

Filed Under: Estate Planning Tagged With: Life Changes

The Silent Threat to Your Estate Plan

June 11, 2019 By Gratia P. Schoemakers, Esq.

It is common knowledge that everyone needs to have an estate plan in place. Commonly, the focus is on assets, taxes, and any changes to legislation that may affect the security of your loved ones in the event of your incapacity or death. What many often forget, however, is that changes in family dynamics and circumstances can threaten even the most well thought out estate plan. This silent threat can easily keep your estate plan from actually working when it is truly needed. Below are several situations where updating an existing estate plan or creating a plan for the first time is necessary to protect your loved ones.

Children reach the age of majority: When beneficiaries under your estate plan grow into adulthood, the manner in which you plan to transfer your assets will likely change. Special needs individuals, for example, may now be eligible for government assistance and the provisions of your existing plan may disqualify them from receiving those benefits in the future. Also, paying for higher education can be a focus as the children become adults. This may prompt changes in distribution amounts or requirements before the beneficiary can receive the money.

You are getting married for the first time: Marriage changes the structure of your family and could cause you to re-prioritize who you would like to leave your assets to. It also may require you to add your new spouse as a beneficiary on retirement accounts or life insurance policies, as well as to update your personal inventory of assets resulting from the purchase, sale, or consolidation that typically occurs with a marriage. If you are changing your legal name, make sure to update all of the relevant documents—including insurance policies, bank accounts, credit card companies, and property deeds.

You are getting remarried: In addition to the things to consider when you are getting married for the first time, a second marriage has the added concern about how to provide financial security for your new spouse while providing an inheritance for your children from a first marriage. This scenario can also affect the timing of how you want the inheritance to be distributed and the amount that is allocated to each loved one. There are several tools that may be used—such as annuities, irrevocable life insurance trusts, or splitting your estate among the beneficiaries—to address your family’s unique needs.

The birth or adoption of a child or children: Whether you are giving birth to or adopting a child, overseeing a minor’s life can be overwhelming. Make sure you have plans prepared in the event you are not around. This includes having a will or trust prepared to outline financial distributions and management of funds for the child(ren), deciding on a guardian and any other necessary fiduciaries, and ensuring that accounts and/or life insurance policies left for the children are properly accounted for.

Bottom Line

Be comforted in knowing that there are no right or wrong answers when it comes to the estate plan for your family’s needs. What is key is to make sure you work with an experienced and knowledgeable estate planning professional to ensure that these silent threats are addressed so your true wishes are carried out when they are needed most. Give us a call or contact us today so we can discuss your concerns and craft the best plan to meet your unique family situation.

We are here to help.

Filed Under: Estate Planning Tagged With: EP Update, Estate Plan, Life Changes, Mistakes, Update

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