Updates

I often receive questions about when to review estate planning documents (such as Wills, Powers of Attorney, etc.). Here are some general guidelines to follow:

-Consider personally reviewing your documents at least once a year to ensure they still conform with your wishes. You may wish to make it a yearly habit (at the start of a new year, your wedding anniversary, etc.) or you may wish to share copies with another advisor with whom you will meet with anyway every year (such as your CPA or Financial Planner).

-Consider a more formal review with your attorney every three to five years. You attorney would be able to review your current situation and determine whether your documents are still the most effective. Furthermore, you can discuss whether there have been any changes in the law that may warrant a change in your documents.

-Review your documents upon the occurrence of a life changing event, such as a death, marriage, divorce, etc. My general rule of thumb is that if you have to ask yourself if something is a life changing event, then it is probably a life changing event.

A change in circumstance does not necessarily mean that you will have to change your legal documents. For example, the birth of a new child would most certainly constitute a life changing event, but most estate planning documents provide for “afterborn” children and therefore no change would be necessary. Nevertheless, for many individuals s, a regular review can at least provide you with some comfort that the documents you have contain the best estate design for you and your family.

Happy Easter

As I spend an Easter Holiday with family, I realize that holidays are such a good time to consider how our loved ones are faring and if they might need any special assistance. If a parent might seem to be having some trouble keeping up with his or her personal finances or just seems a little more forgetful than usual, then it might be a good idea to begin thinking about putting a personal financial security system in place (with tools such as a revocable living trust or durable power of attorney).

It is important to note that any such steps are best taken with the full support of all parties involved (including siblings). Having a frank and open discussion at the outset can go a long way to preventing suspicion and angst later that may derail any attempts to help.