Estate
planning is an ongoing process. Once you have done the hard work of
drafting your will and living will, there may still be a number of reasons to
look over your documents and make changes if needed. To find out if your estate
is up to date, ponder these 6 ‘stress test’ questions.
1. Has anything changed since the last time you updated your will or living trust?
Think about whether any important events
have taken place such as:
- Have you married, had children
or divorced? - Has anything changed
business-wise such as buying or selling a business? - Have you changed your mind
about how you want to divide your assets?
If you have made any significant changes,
then it is important to update your documents as soon as possible. This is
because the beneficiaries named in your will, receive what has been left to
them, regardless of whether your relationship with them has changed. Also,
there are often legislation changes, and these may have significant tax or
other implications for your plan.
2. Are you fully covered by insurance?
In most cases, people fail to fully cover
themselves and their businesses, as well as neglecting to name beneficiaries of
insurance plans. Check that your insurance policies are in order, and that the
people you have designated as beneficiaries match those in your estate plan.
3. Who are the people named as executors and trustees?
It may be that your plans were drawn up a
while ago. You might find, if given a choice, the people that you named as
executors and trustees then, would not be the same people that you would name
if you re-did your will now. Check that you have chosen the best person for the
job and that they are still available and willing to serve in that capacity.
4. How is your property owned?
If you have property that is jointly owned
with someone that is not your spouse, there is the potential for double
taxation in the event of your passing.
If you own 50% interest with the other
co-owner, you both have control over the asset. Upon death, the surviving owner
receives 100% of the property outright with no creditor protection and your
interest is not left to your
beneficiaries.
Work with an estate
attorney to ensure that the outcome you wish to happen upon your passing has
been put in writing in your estate plan.
5. Are your records up to date?
It’s frustrating and time-consuming for an
estate executor to try and untangle an estate where there are valuable assets,
but not much in the way of record keeping. It may also cost your beneficiaries
as assets may be overlooked or incorrectly processed.
For new accounts, properties and businesses
that you own but did not update in your estate plan, a probate will be opened.
The new assets will then be distributed in accordance with the laws in North
Carolina, which may not align with your wishes.
6. When did you last give your estate plan a thorough read through?
It may feel like nothing momentous has happened recently that would warrant making changes to your estate plan. But, if it’s been over five years since you’ve spoken to an estate planning attorney, it’s time to make an appointment. You can use the time to clarify any questions you might have about asset protection for your beneficiaries and using a standalone retirement trust.
If you need some help with estate planning,
it’s time to contact an Raleigh estate lawyer. Stephen Stewart of Stephen P. Stewart Law is a
specialist estate planning attorney that has helped hundreds of individuals
with their family estate planning in Raleigh. He is available to assist with
setting up a living trust, estate planning trusts, and is a qualified probate
attorney.
The following post was first seen on 6 Secrets to Stress Testing Your Estate Plan and is courtesy of Stephen P Stewart Law. Read more on:} Stephen P Stewart Law
Keeping your estate plan current with each new significant development in your life is much more efficient than having to do a comprehensive overhaul later on. The end of the year is the perfect time to take stock of any changes regarding the individuals listed in your estate planning, like fiduciaries or beneficiaries, in case adjustments are required.
Choosing an attorney is relatively straight-forward, they should have the necessary qualifications and experience to cover the majority of issues that might arise in your business. If your business is local, they should have a good understanding of the parameters of the work and be available to offer support and advice where needed. Some questions that you can ask yourself include, “Does the attorney communicate well and can I understand what he is talking about?”, “Are their offices conveniently located?”, And “Do I trust them?”. In order to build a constructive long-term relationship, it’s crucial that there is a resounding yes to all of these questions as you will be placing a lot of trust in them as you work together on your business.
Stephen P Stewart Law 