If you have made an estate plan—good for you! Too many have not. However, you do need to review it every few years–and sooner if there are life changes–or a change in asset status. As the saying goes: time flies….Here are tips for reviewing your plan–or event starting one.
Decision Makers: Money and Health?
Ideally, when you created an estate plan, you designated a power of attorney for both financial and health making decisions in the event you experience a capacity decline:
Power of attorney (POA) grants someone the authority to manage your financial and/or medical affairs if you become incapacitated. A medical POA agent manages your healthcare, a financial POA manages your finances, and a general POA manages both. Your POA agent should be someone you can trust to be responsible and keep your best interests in mind, so your partner is likely a good candidate.
When reviewing your plans, it’s important to check in with those you have given POA. Make sure they are still prepared to step in should you need them, and that they have current information about your assets, accounts and health care preferences. Though perhaps awkward or challenging, clarity is best and if your designees are out of reach, preoccupied with their own matters or otherwise unable to be of help, it’s best to agree on shifting the responsibility to another trusted friend, relation or even a professional. Similarly, check in with the designated fiduciary named when you created a will and or trust for your estate plan. Depending on your circumstances and location, this person may be specifically referred to as an executor, personal representative or trustee. Make sure they understand their obligations, and have the information and ability to fulfill them. Again, transparent communication is best. These snapshots of executor duties
and trustee duties will come in handy.
Review Asset and Beneficiary Designations
Once care and decision-making plans are updated for yourself, it’s important to review asset and beneficiary designations to ensure they accurately reflect your current circumstances and intentions. Life events, like births, adoptions, marriages, divorces, illnesses and deaths might mean it’s time to make beneficiary adjustments. In addition to bringing your will and or trust up to speed, don’t forget to check the named beneficiaries on all your accounts:
Your bank accounts, retirement accounts, and life insurance policy should all have a designated beneficiary. If you want your partner to inherit those assets, make sure to name them as the beneficiary. The beneficiary designations on these accounts override a will, so they are typically non-probate assets. You can also name your trust as beneficiary, so that your assets end up in the right hands at the right time.
Remember, sometimes changes go under the radar when it comes to estate plans, so be sure to think comprehensively about possible impacts to your original ideas, and make shifts accordingly. Here are some events that may signal it’s time for a thorough
- The birth or adoption of a new child or grandchild
- When a child or grandchild becomes an adult
- When a child or grandchild needs educational funding
- Changes in your number of dependents, such as the addition of caring for an adult
- Change in your or your spouse’s financial or other goals
- Illness or disability of your spouse
- Change in your life or long-term care insurance coverage
- Purchasing a home or other large asset
- Borrowing a large amount of money or taking on liability for any other reason
- Large increases or decreases in the value of assets, such as investments
- If you or your spouse receives a large inheritance or gift
- Changes in federal or state laws covering taxes and investments
- If any family member passes away, becomes ill, or becomes disabled
- Career changes, such as a new job, promotion, or if you start or close a business
Good To Know: Estate Bonds?
Regardless of the details of an estate plan, the appointed fiduciaries, such as trustee, executor or personal representative, have a legal obligation to honor the plans–and the law. Accordingly, when representatives are designated, fiduciary bonds, often referred to as estate bonds, may be required. Learn more about estate bonds right here. At Colonial Surety Company, a leading national provider of all types of fiduciary bonds, the steps to obtaining estate bonds are easy: get a quote online, fill out the information, and enter a payment method. Print or e-file the bond from anywhere—even the law office.
Estate Law Practice?
Colonial Surety is here to help speed things up whenever and wherever a bond is needed. With a few clicks, you’ll arm your clients with exactly the bond specified.
Just log in to The Partnership Account® for Attorneys, choose a bond, send it to your client for payment, then download, e-file or print the bond. Specific obligee requirements? Trust us: Colonial’s a direct bond writer, so our experts are here to ensure the requirements of obligees across the country are properly met.
Our fiduciary bond portfolio includes: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on. Our court bond portfolio includes appeal, supersedeas, injunction, replevin, receiver and more.
Speedy, easy bonds court and fiduciary bonds, right here:
The Partnership Account® for Attorneys.
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