Investing with Faith / Ann Schneider

Make the time to review and keep your estate plan current

If your life is anything like mine, you blink your eyes and another five years has gone by. Time passes quickly.

I am reminded of this truth when I sit down with clients to discuss updates to estate planning documents. Though it may seem like yesterday, oftentimes several years have passed since the wills were reviewed and, in the meantime, loved ones have been born, grown up, moved away or died. Life has changed.

Preparing an initial will and other estate planning documents involves making decisions based on current circumstances. Oftentimes, once the task has been completed, it is checked off of the “to-do” list and not thought about again for many years. But reviewing your estate planning documents periodically is important to ensure your goals continue to be met.

While wills typically include contingencies in the event of life changes, it is impossible to foresee every circumstance we will encounter during the course of our lifetimes.

Individuals working on an estate plan at the start of adulthood likely expect to establish a plan to pass on assets they are beginning to grow, or to designate caregivers for young children. They may assign parents, siblings or friends to the roles of executor, health care representative and guardian.

But through time, the individuals best suited to make decisions or carry out wishes will likely change. As children or other loved ones age and mature, they may become a better fit for filling those roles.

Financial outlooks can also change significantly through the years. An individual early in his career may earn income scarcely greater than his expenses. Parents with young children likely face the ever-increasing costs of school, medical bills and extracurricular activities, expenses which may make the possibility of ever having extra money seem out of reach.

Documents drafted during these years tend to include a plan for assets to be left under the care of trusted individuals, who are tasked with ensuring the money is used to provide for children and other loved ones.

But through time, income may increase and bills may lessen. Individuals may begin reflecting on ways to show gratitude to the people, organizations, schools and churches which have provided support throughout their lifetimes and consider leaving a legacy of some sort to ensure others can receive the same benefits.

These points of change in our lives are the exact times at which estate planning documents should be re-examined. I recommend that wills, power of attorney and health care documents be reviewed at least every few years and certainly with any major life change, including the birth or death of a loved one or a change to the age, maturity or marital status of beneficiaries or people assigned to various roles in the documents.

Beneficiary designations on retirement, investment accounts and life insurance policies should also be revisited. Review these documents not only to confirm that the people you have assigned to carry out your wishes are still the right choice, but also to ensure that your plan exemplifies your values and priorities, the things that matter the most to you.
 

(Ann Schneider is a founding member of Taylor, Chadd, Minnette, Schneider & Clutter Law firm in Indianapolis. She also is a member of the archdiocesan Catholic Community Foundation Planned Giving Committee and a member of St. Jude Parish in Indianapolis.) †