Not so much for estate planning attorneys. Summer is one of the busiest times of the year for an estate planning attorney. When clients make plans to travel, they often also make plans to update their estate plan.
In my work as a professional fiduciary, I am often asked when does a client need to see an attorney to update their documents? Before you travel, it is always a good idea to make sure you have your emergency documents in order. There are other events as well.
Here's the cake. The layer cake is a time-honored tradition in estate planning. Sometimes, it is used to depict the very basic estate planning (first step) through very complex, advanced estate planning (useful for a few situations). Here the concept is applied more widely by using layers to depict events which can have a dramatic affect on your estate plan. Select your favorite flavor, this cake has 6 layers with a cherry on top.
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Business Succession*
Stock Options,
Advanced Tax Strategies.
Gross estate > $5,000,0000
or interest in a large charitable gift*
Health events
You or your named agent* have a major health event.
*Sibling Rivalry*
When your heirs, children or potential beneficiaries are in conflict.
A change in the status of heirs or children².
This includes having children, losing a child, or an adult child reaching a level of maturity.
A change in marital status.
This can include a new marriage, a divorce* or death* of a spouse. A trust is often described as a contract between spouses or those who are asked to honor your wishes. This event a clear signal to update your estate plan.
* This event may signal that you may need to select a neutral professional fiduciary for your trustee or agent, especially if you are considering a charitable trust or there is conflict between beneficiaries. Select an experienced neutral to insure your trust is handled properly and according to your wishes.
² At times adult children are not the best choice due to their circumstance, such as bankruptcy, health issues, mental disorders, spendthrift, busy or live far away. Who is a good choice? Read a law professor's thoughts on this topic by clicking here.
δ This is the cherry on top, the 7th layer. It is meant to remind us to review and update our estate plan every 7 - 10 years. This will better insure your plan meets your current life needs and the current legal requirements.
The estate plan documents are formal, legally binding instructions to your named trustee and agents as to your wishes. Current documents will reflect your most current choices in case you encounter an emergency. If you would like to consult with an experienced professional fiduciary to better understand how a fiduciary might serve your family, please call our office.
Remember, this general discussion may not be relied upon as legal advice. For that, you would need to call your friendly neighborhood attorney.
