KPM

split annuity Estate Planning Terms Living Will Trust Protector LTC Expenses Incentive Trusts Gift Tax Return Family Business Succession Planning Special Needs Trust Elderly Parents In Your Estate Plan Beneficiary Designations Turn Down An Inheritance Power Of Attorney Inter Vivos Securities Laws DAPT College-Age Children Do Need An Estate Plan Estate Planning Documents Annual Gift Tax Exclusion CRT Name A Guardian Power To Remove A Trustee Living Trust Owning Assets Silent & Incentive Trusts Payable-On-Death Accounts Reduce your estate tax Executor Art Collection QTIP Trust portability Life insurance Portability Probate Original Will Estate Planning Estate Plan Estate Planning Estate Planning Asset Protection Strategies

Review Your Estate Plan In The Midst Of A Major Life Shock

Generally, it is recommended that you review your estate plan at year’s end. It is a good time to check whether any life events have taken place in the past 12 months or so that affect your plan.

However, with a life shock as monumental as the coronavirus (COVID-19) pandemic, now is a good time to review your estate planning documents to ensure they are up to date — especially, if you have not reviewed them in a number of years.

When Revisions Might Be Needed

The following list is not all-inclusive but it can give you a good idea of when estate plan revisions may be needed:

  • Your marriage, divorce, or remarriage
  • The birth or adoption of a child, grandchild, or great-grandchild
  • The death of a spouse or another family member
  • The illness or disability of you, your spouse, or another family member
  • A child or grandchild reaching the age of majority
  • Sizable changes in the value of assets you own
  • The sale or purchase of a principal residence or second home
  • Your retirement or retirement of your spouse
  • Receipt of a large gift or inheritance
  • Sizable changes in the value of assets you own

It also is important to review your estate plan when there have been changes in federal or state income tax or estate tax laws.

Will & Powers of Attorney

As part of your estate plan review, closely examine your will, powers of attorney, and health care directives.

If you have minor children, your will should designate a guardian to care for them should you die prematurely, as well as make certain other provisions, such as creating trusts to benefit your children until they reach the age of majority or perhaps even longer.

A durable power of attorney authorizes someone to handle your financial affairs if you are disabled or otherwise unable to act. Likewise, a medical durable power of attorney authorizes someone to handle your medical decision making if you are disabled or unable to act. The powers of attorney expire upon your death.

Typically, these powers of attorney are coordinated with a living will and other health care directives. A living will specifies your wishes concerning life-sustaining measures in the event of a terminal illness. It says what measures should be used, withheld, or withdrawn.

Changes in your family or your personal circumstances might cause you to want to change beneficiaries, guardians, or power-of-attorney agents you have previously named.

Find Calm in the Middle of a Storm

In the midst of the COVID-19 crisis, many people’s thoughts are turning to their families. Updating and revising your estate plan today can provide you peace of mind that your loved ones will be taken care of in the future. We can help you determine if any revisions are needed.

Related Articles

Talk with the pros

Our CPAs and advisors are a great resource if you’re ready to learn even more.