Do you really understand your estate plan?

Do You Really Understand Your Estate Plan?

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When the issue of estate planning comes up, some people tell me, “Oh, we’ve already taken care of that.” Then I ask them some specific questions about their plan, and the answer is almost always, “I don’t know.” What kind of a plan is that? That’s like saying you just had surgery, but you’re not sure what surgery it was.

If you already have an estate plan, ask yourself the following questions:

1. Do you have a testamentary trust or a living trust?

2. What kind of living trust do you have? Is it what you need?

3. Do you have a “Schedule A” somewhere in your plan?

4. How do successor trustees take charge? What is the system of succession and is it spelled out clearly?

5. Are your assets clearly designated as “community property” or “separate property?”

6. Are all your beneficiary designations in order? When was the last time you checked?

7. Is your life insurance payable to your spouse? Your kids? Your Trust? What is best for you? Perhaps you should remove the life insurance from your estate for tax reasons?

8. Does your trustee or agent under power of attorney have the ability to help you qualify for state assistance if necessary?

9. Is your trust revocable or irrevocable? Who has the power to do so? If it is revocable, when does it become irrevocable?

10. Do you have a HIPAA authorization?

11. When does your Durable Power of Attorney become effective?

12. Was your Health Care Directive executed prior to 1992?

13. Does your Health Care Directive really capture your wishes? When is it effective?

14. Are the people you’ve chosen willing to serve?

15. Do you have a community property agreement? Do you need one?

16. Have you given any direction to the guardian of your children or have you simply “nominated” someone without any further instruction?

If you don’t know the answers to these questions or would like your plan reviewed, please feel free to make an appointment. Your plan should reflect your wishes, and your lawyer should explain things to you. I want my clients to actually understand their plan – not just “have” one.

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