Estate planning: Next to a root canal, it is something most of us avoid studiously.
Even though some time ago you may have planned your estate with a will, “durable” power of attorney, and advanced health care directive (“living will”), you really should go to the closet, blow the dust off the documents, and review them every 18 months or so.
Things change. Kids grow to adulthood, and their needs change. People designated as fiduciaries (executor, trustee, guardian, etc.) move, die, or for one reason or another may not be suitable to act in such capacities. And the “rules” change; laws are in a constant state of flux, and have since been modified (the best current illustration being the federal estate tax which may be substantially changed within the next 12 months).
Perhaps more significant is the change in the value or nature of your estate’s assets. With volatile market conditions, real estate values have changed dramatically over the past decade, most of it to our advantage. The collapse in the value of many securities in the late 1990’s had a devastating effect on many estates’ worth; pension, IRA and 401K plans, and other savings accounts in many cases were decimated. Likewise, there is the enormous surge in the stock market over the past two years; as a result an estate may now for the first time be subject to the federal estate tax and significantly different estate planning considerations.
If you have never written a will, it may be worthwhile to consider doing so to assure that on your death your assets will be distributed in accordance with your wishes. If you die without a will the disposition of your estate will be in accordance with the rules applicable to intestacy, which may or may not be in accordance with your wishes. A will insures that your heirs will receive what you want them to. With a will you almost certainly would want to execute a “durable” power of attorney (which appoints someone to act on your behalf as to your estate if you should become incompetent) and a “living will” (which deals with the type of medical care you are to receive if you are unable to express yourself because of illness).
And of one thing you can be certain: the pain will not be close to that of a root canal.
Let us know if we can help.
– Ken Butera