What are Top ‘To-Dos’ in Estate Planning?

Michele Ungvarsky
Elder Law, Estate Planning, Trust Administration

Written By:

Michele Ungvarsky

Michele has an intimate knowledge of how a severe illness with no planning can decimate an estate. Her father developed early dementia, and her parents moved in with her. As her father’s condition worsened, she experienced firsthand the struggle and watched as the medical costs stripped her parent’s retirement accounts. Like many families, they had no idea where to turn, and they fumbled their way through the system. That is the reason she is so passionate about “Planning it Forward.” She wants to make sure other families have plans in place and receive help when a crisis does strike. In the words of Sugar Ray Leonard – “Success is attaining your dream while helping others to benefit from that dream materializing.”

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The biggest misconception people have about estate planning is that “they are not that old and can do it later,” say almost half (49%) of advisors in a recent Key Private Bank Advisor Poll on estate planning. Yet, the majority (73%) of advisors say the ideal age to start putting an estate plan in place is before 40—earlier than many people think.

Spotlight News’ recent article entitled “Estate Planning To-Dos” says that with the potential for substantial changes to estate and gift tax rules under the Biden administration, this may be an opportune time to create or review your estate plan. If you are not sure where to begin, look at these to-dos for an estate plan.

See an experienced estate planning attorney discuss your plan. The biggest estate planning mistake is having no plan whatsoever. The top triggers for estate planning conversations can be life-altering events, such as car accidents or health crises. If you already have a plan in place, visit your estate planning attorney and keep it up to date with the changes in your life.

Draft financial and healthcare powers of attorney. Estate plans contain multiple pieces that may overlap, including long-term care plans and powers of attorney. These say who has decision-making power in the event of a medical emergency.

Draft a healthcare directive. Living wills and other advance directives are written to provide legal instructions describing your preferences for medical care if you cannot make decisions for yourself. Advance care planning is a process that includes quality of life decisions and palliative and hospice care.

Make a will. A will is one of the foundational aspects of estate planning. However, this is frequently the only thing people do when estate planning. A huge misconception about estate planning is that a will can oversee the distribution of all assets. A will is necessary, but you should think about estate plans holistically—as more than just a will. For example, a modern aspect of financial planning that can be overlooked in wills and estate plans is digital assets. It is also recommended that you ask an experienced estate planning attorney about whether a trust fits into your circumstances and help you with the other parts of a complete estate plan.

Review beneficiary designations. Retirement plans, life insurance, pensions, and annuities are independent of the will and require beneficiary designations. One of the biggest estate planning mistakes is having outdated beneficiary designations, which only supports the need to regularly review estate plans and designated beneficiaries with an experienced estate planning attorney.

Reference: Spotlight News (May 19, 2021) “Estate Planning To-Dos”

What are Top ‘To-Dos’ in Estate Planning?

Written By:

Michele Ungvarsky

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