One of the more common questions I get: when should I think about updating my estate plan?
It’s an important question, and the answer is simultaneously simple and complex.
Simple answer: a review of one’s estate plan should accompany all major life events.
So…what qualifies as a “major life event”?
Probate is difficult enough under the best of circumstances. It’s a lot of confusing paperwork, back and forth with the Surrogate’s Court, and months of delay before an executor is finally empowered to act on behalf of an estate. When an estate includes real estate, the problem is amplified.
Most of the time when people set their beneficiaries on things like 401(k)s, IRAs, life insurance policies, and brokerage accounts they name their spouse as “primary” (assuming they have one), and their kids as “contingent.” We’ve been told this eases the burden on our family, so they can avoid probate when we pass - a noble goal! Unfortunately, if your children are under eighteen, this well-intentioned plan can lead to unintended complexities – even if you have a will.
A lot of the issues in running a business are solved by simply doing a great job for your clients, being honest about what you know and what you don’t, and being a clear communicator. Many others, like those around efficiency and sustainable growth, are a little more complicated yet vitally important to the survival and success of a business.
Good planning situates people so that they are poised to react strategically no matter the path forward. So, depending on the value of your estate and the type of assets you own, there may be tactics that can be utilized now to properly position yourself to made the right changes (if necessary) between election day and the 1st of the new year.
