The information in this column is not intended as legal advice but to provide a general understanding of the law. Any readers with a legal problem, including those whose questions are addressed here, should consult an attorney for advice on their particular circumstance.
This week, I will provide tips for getting your estate plan organized. Before you sit down with your estate planning attorney, you should do a few things to make the process go as simply as possible.
First, you need to define your goals. If you were to pass away, who would you want to inherit your assets? If one of these beneficiaries were to predecease you, who would be your backup choice as a beneficiary? How and when would you want these assets to be distributed? These are some basic goals to address.
Decisions on the distribution of your estate are impacted by the size of your estate, your personal goal, and the age and abilities of your beneficiaries. For example, a distribution to your child may need to pass into a trust depending on their age and education goals. You might want to set up a plan that will provide for education and health expenses to be made by another mature adult until your child has the life experience to make these decisions on their own.
If your children are minors under the age of 18, then the selection of a guardian is crucial. This will be the person or persons raising your child(ren) in the event that you pass away. Selecting a trusted family member or close friend with the same morals and ethics you have factored into this decision.
Selecting multiple successor executors, trustees, and guardians is a good idea. This can institute a system of checks and balances but it is important if your first choice is not able to act in this role.
Secondly, you should gather your important documents and information. If you were hit by a bus tomorrow, where would your trusted executors find information? This should include your estate documents, deeds, titles to vehicles, financial information, and contacts. Also, review your beneficiary designations to ensure they align with your goals. This is often overlooked. I have seen far too many families rifle through their parents’ houses trying to locate this information. This is a difficult task, but even more so in an emergency or after a loss.
Third, do some self-reflection. What is your current health? What are your current assets? Who are your key contacts and trusted advisors?
Many estate planners have tools to help you organize and gather this information. Putting together your personal records in a convenient document will be of great benefit to your family. It can also save time and stress in an emergency.
Your estate planning attorney can help you identify what documents you need, and with the information discussed above, they can implement your plan.
However, you must monitor your plan from time to time. Relationships change, and trusted family members may move or be unable to act. Your estate plan will need to be reviewed and adjusted. As a rule of thumb, I recommend you evaluate your assets, advisors, family members, and trusted executors every five (5) years, but certainly not more than every ten (10) years.
With a little bit of foresight and planning, you can greatly reduce the administrative burden on your family and heirs after you pass, not to mention saving them time from having to discover and understand your affairs.
Sam A. Moak is an attorney with the Huntsville law firm of Moak & Moak, P.C. He is licensed to practice in all fields of law by the Supreme Court of Texas, is a Member of the State Bar College and is a member of the Real Estate, Probate and Trust Law Section of the State Bar of Texas. © www.moakandmoak.com
