If you’re like most people, you likely think estate planning is just one more task to check off your endless “to-do” list.
You may shop around and find a lawyer to create planning documents for you, or you might try creating your own DIY plan using online documents. Then you’ll put those documents into a drawer, mentally check “estate planning” off your to-do list, and forget about them.
The problem is, estate planning is not a one-and-done type of deal.
In fact, if it’s not regularly updated when your assets, family situation, and the laws change, your plan will be worthless. Failing to update your plan can create its own set of problems that can leave your family worse off than if you’d never created a plan at all.
The following true story illustrates the consequences of not updating your plan.
A game-changing realization
When Ali was in law school, her father-in-law died. He’d done his estate planning—or at least thought he had. He paid a Florida law firm roughly $3,000 to prepare an estate plan for him, so his family wouldn’t be stuck dealing with the hassles and expense of probate court or drawn into needless conflict with his ex-wife.
Yet, after his death, that’s exactly what happened. His family was forced to go to court in order to claim assets that were supposed to pass directly to them. On top of that, they had to deal with his ex-wife and her attorneys in the process.
Ali couldn’t understand it. If her father-in-law paid $3,000 for an estate plan, why were his loved ones dealing with the court and his ex-wife? It turned out that not only had his planning documents not been updated, but his assets were not even properly titled.
Ali’s father-in-law created a trust, so that when he died, his assets would pass directly to his family, and they wouldn’t have to endure probate. However, some of his assets had never been transferred into the name of his trust from the beginning. Since there was no updated inventory of his assets, there was no way for his family to even confirm everything he had when he died. To this day, one of his accounts is still stuck in the Florida Department of Unclaimed Property.
Ali thought for sure this must be malpractice. However, after working for one of the best law firms in the country and interviewing other top estate-planning lawyers across the nation, she confirmed what happened to her father-in-law wasn’t malpractice at all. In fact, it was common.
This inspired Ali to take action. When she started her own law firm, she did so with the intention and commitment that she would ensure her clients’ plans would work when their families needed it and create a service model built around that mission.
Will your plan work when your family needs it?
Outside of not creating any plan at all, one of the most common planning mistakes is a plan that no longer works. Yet by that point, it’s too late, and the loved ones left behind are forced to deal with the aftermath.
We recommend you review your plan annually to make sure it’s up-to-date, and immediately amend your plan following events like divorce, deaths, births, and inheritances. This is so important that we’ve created proprietary systems designed to ensure these updates are made for all of our clients, so you don’t need to worry about whether you’ve overlooked anything as your family, the law, and your assets change over time.
Furthermore, because your plan is designed to protect and provide for your loved ones in the event of your death or incapacity, we aren’t just here to serve you—we’re here to serve your entire family. We take the time to get to know your family members and include them in the planning process, so everyone affected by your plan is well aware of your latest planning strategies and why you made those choices.
Unfortunately, many estate planning firms do not engage with the whole family when creating estate plans, leaving the spouse and other loved ones largely out of the loop. We believe the planning process works best when all of your loved ones are educated and engaged. We can even facilitate regular family meetings to keep everyone up-to-date.
Built-in systems to keep your plan current
Our legal services are designed to make estate planning as streamlined and worry-free as possible for both you and your family. Unlike the lawyers who worked with Ali’s father-in-law, we don’t just create legal documents and put the onus on you to ensure they stay updated and function as intended. We take care of that on our end.
For example, our built-in systems and processes would’ve prevented two of the biggest mistakes made by the lawyers who created her father-in-law’s plan. These mistakes include: 1) not keeping his assets properly inventoried, and 2) not properly titling assets held by his trust.
Maintaining a regularly updated inventory of all your assets is one of the most vital parts of keeping your plan current. We’ll not only help you create a comprehensive asset inventory; we’ll make sure the inventory stays consistently updated throughout your lifetime. In fact, we’ve even created a unique (and totally FREE) tool called a Personal Resource Map to help you get the inventory process started right now, by yourself, without the need for a lawyer.
Start creating an inventory of everything you own to ensure your loved one’s know what you have, where it is, and how to access it if something happens to you. From there, meet with us to incorporate your inventory into a comprehensive set of planning strategies that we’ll keep updated throughout your lifetime.
As to properly titling assets held by a trust, when you create a trust, it’s not enough to list the assets you want it to cover. You have to transfer the legal title of certain assets—real estate, bank accounts, securities, brokerage accounts—to the trust. This is known as “funding” the trust, in order for them to be disbursed properly.
While most lawyers will create a trust for you, few will ensure your assets are properly funded. We’ll not only make sure your assets are properly titled when you initially create your trust, we’ll also ensure that any new assets you acquire over the course of your life are inventoried and properly funded to your trust. This will keep your assets from being lost, as well as prevent your family from being inadvertently forced into court because your plan was never fully completed.
For the love of your family
With us as your Family Wealth Lawyer, our planning services go far beyond simply creating documents and then never seeing you again. In fact, we’ll develop a relationship with your family that lasts not only for your lifetime, but for the lifetime of your children and their children, if that’s your wish.
We’ll support you in not only creating a plan that keeps your family out of court and out of conflict in the event of your death or incapacity, but we’ll also ensure your plan is regularly updated to make certain that it works and is there for your family when you cannot be. Contact us today to get started.
This article is a service of Elena Ortega-Tauler, Family Wealth Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.