Now that tax time is past, its time for everyone to think about the other financial responsiblitiy, estate planning. It is a very good idea to review your plans every few years.

Start simply, make sure that you and your spouse have wills. Just as importantly, reread them and make sure that they will accomplish exactly what you want them to accomplish. Life is dynamic and things change over time. Your will should keep up with the changes in your life.

Review the clauses and try to avoid a "sweetheart" will (if I die she gets everything, if you die I get everything). Sweetheart wills make for terrible estate planning. Also, make sure that you have provisions for the trusts you want/need so that the money can be passed properly to your hiers.

Review your insurance, heath care, living wills and anything else that involves your estate. Make sure that both you and your spouse knows where everything is and how everything works. The worst time to learn about this is when you have to.

Make an appointment to discuss this with your accountant and/or your attorney.

This is important and I wanted to share it with everyone.

 

Great advice.
It's amazing how many people put this stuff off, thinking they have time. My daughter, age 23, is going on a cruise this summer, so my wife had her into the office to make up a will, living will and vocalize what she wanted.

The last thing you want is for somebody else to be making these decisions for you.


dvh

 

Good advice, Rob.

A couple of years ago, my daughter in law got in a car accident. She had a concussion. Hearing she want to the hospital with possible head trauma was very scary. She was lucky.

Once things were settled down, I told my son that life can change in an instant. They needed to get to the lawyer's (my sister) office to make up wills, name a guardian for the child, etc. Thankfully, they took my advice.

Also good advice to review things periodically. When my entire little family was about to get on a plane together last fall, I had some thoughts about what would happen if............Rick and I needed to make some changes in our wills, which we did before we left on the trip.

 

It is good advice, Rob...I've been managing Auntie's estate for about 10 years now, but lax about my own. I have the draft of a revocable trust that I haven't gotten around to finishing yet. This reminder may inspire me to do it!

 

[QUOTE=ralper,Apr 18 2006, 08:18 PM] Review the clauses and try to avoid a "sweetheart" will (if I die she gets everything, if you die I get everything).

 

Does your planner have to live in the same state? If not, we need to talk. We have to file our wills in court but I'm told some states do not. And what if you're planning on leaving the state at some time in the future? Does any of this matter?

 

I'll let Rob give you his opinion on this. The answer will vary depending on the value of your assets. I, for one, think this "sweetheart will" approach is fine if you have very young children and the type of assets you have described above. Depending on the dollar amount of your assets and life insurance policies, you may want to create trusts for the children that will be funded upon your death by the proceeds of the insurance policy. As you get older, you may want to gift some things and consider the tax consequences of your death.

 

Yes I can see situations where the simple form is not sufficient. I was just wondering why Rob made the blanket statement the way he did. Seems like it would be OK for simple situations, especially while we're relatively young.

JonasM

 

[QUOTE=JonasM,Apr 19 2006, 07:37 AM] Can you give me a quick reason why this is necessarily bad (assuming that there's also a section that details what happens if both die)? Seems to me that there's not a lot of difference between "everything does to my spouse" and "the house goes to my spouse, the car goes to my spouse, the 401K goes to my spouse, the S2000 gets buried with me ... oops....

 

That's about what I thought. Thanks.