| You have done your Revocable Living Trust, your
Durable Power of Attorney, and your Advance Health Care
Directive. Your will, which coordinates with your living
trust, is also in place. You may have done some tax
planning. As much as you would like not to think about
these documents anymore, you should. At least every two
years, you should review your documents to make sure that
they still reflect your wishes, your values, and your goals.
We are not stagnant in our views. We evolve. We develop new
concerns. We may want to be exposed to new ways of looking
at estate planning.
What are some of the issues you might think about in a review?
- Are you comfortable with your choice of successor
trustee? You might have named your oldest child or the
most conveniently-located child as your successor trustee.
Does this child understand the responsibilities that flow
from being a "fiduciary"? Does this child have the time
and inclination to serve? Serving as trustee when you are
ill and after your death is a major, consuming task. Be
sure you name a person who will accept and discharge the
responsibilities.
Have the needs of your family members changed?
- You leave everything to your children in equal
shares, but one has become wealthy and one is in a
profession that is not highly remunerative. Should you
leave more to the needy child?
- Have any family members experienced major health
problems?
- If a child or grandchild has become disabled (cannot
work), have you thought about a Special Needs Trust to
hold assets for the benefit of that child or grandchild?
A simple direct bequest can cause this individual to
lose any hope of becoming eligible for important public
benefits that can provide monthly income and medical
coverage.
- Have you thought about an education trust for
grandchildren?
- Have you been creative in thinking about charitable
giving? As an alternative to simple charitable gifts,
which are wonderful, have you thought about establishing
an "advice fund" at a community foundation so that your
family fund would live on in perpetuity?
- Have you thought about establishing a family
foundation, which is much more accessible and manageable
than you might imagine?
- Have you looked at your estate planning documents in
the context of today's evolving - and unpredictable -
treatment of estate and gift taxes?
- Have you considered a Family Protection Trust? This
trust allows your child to protect inherited assets from
creditors and from property division in the event of
divorce.
Any or all of these issues will reward your attention.
Make sure that your documents are up to date, sufficiently
sophisticated, and reflect your long-term values and goals.
A review of your trust is not a difficult or costly process.
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