Solstice Greetings (or thereabouts), everyone! I know I've been recalcitrant (my word of the day) or at least remiss about keeping you up to date on exciting new developments in the world of trusts and estates, but I confess that those jewels are few and far between at best - and there hasn't been any "breaking news" of late.
Still, I want to dispel any vicious rumors out there that I've retired or am about to retire or am even thinking about retiring - because there's not a skosh of truth about it and it may just be wishful thinking on someone's part. The truth of the matter is that my dear departed mother (she would be 103 this week) always said, "Phil, you know you're going to be dead for a long time, so you ought to do all you can while you're still alive and kickin'." And, of course, I always did/do what my mother told me to. But enough family history.
I spend a lot of time reviewing people's documents with them, because of changes in their families or their finances or because it's been a decade or two and they want to make sure their arrangements are still up to snuff. Here's what I tell them.
If their wills still say what they want them to - i.e., the correct beneficiaries and executors are named and there haven't been any significant asset or family changes to deal with, then they're probably fine on that front. But if they now have children or grandchildren who are still youngsters or need special attention due to their financial maturity or lack thereof, or because they now own a condo in Boca where they retreat for the winter, or the ones they've designated as their executors are no longer willing or able to take on those responsibilities for them, then new strategies may be in order.
Often, changes like those - and many others - may suggest that a revocable trust could protect what they leave for those young beneficiaries, or could make sure that the tropical condo doesn't need dreaded probate administration in its distant jurisdiction, or could designate a competent new representative or two to step in when the need eventually arises. Plus, even if they already have a trust, perhaps there are assets not properly titled to take the probate avoidance advantage that trusts offer.
So, those concerns cover the half of estate planning that deals with the once-we're-gone. The other half is planning for while we're still alive but may not kicking as vigorously as we were. That's where powers of attorney and health care directives come in, the former dealing with our legal and financial affairs (i.e., paying bills, filing tax returns, overseeing investments, to name a few of the biggies), and the latter covering our medical and health-related decision-making if we can no longer manage those important tasks ourselves.
Again, we need to have the right people in the right roles for those purposes - financial wizards may be great at their strengths, but might not have the right sensibilities at all for intangibles like our medical care or end-of-life decisions. And because health care can often requires immediate responses, it's critical for those documents to include current phone numbers and e-mail addresses, because emergency medical folks aren't going to write letters to our agents, they're going to call or text or e-mail for advice and then may need a response stat.
All this means the necessary information needs to be kept up to date, which is why many banks, insurance companies and medical providers want these documents executed within about the last 10 years, because they figure the information may be stale and unreliable after that period of time.
And there's no advantage to putting off these issues, because once the need for them arises, it may be too late to get new documents in place. The early bird not only gets the worm, but the best surrogate decision-making, too.
Finally, a T&E factoid: If your plans aren't up to date, you can take some solstice (that is, solace) from the knowledge that President Lincoln didn't even have a will. I guess he was counting on coming home safely from the theatre that night - which I guarantee will happen if you visit the Peterborough Players this summer and will result in a lot more fun than he had that night. Enjoy our 12 score and 10th national birthday, too!