Four More Things You Didn't Know About Estate Planning
Last week we looked at four areas of estate planning you might not be aware of. Writing that love letter to those nearest and dearest to you is an important undertaking, one that in extreme cases has seen families turn on each other and even be left impoverished because it hasn’t been handled correctly.
Here are four more areas you should consider when writing your own love letter to leave behind for your loved ones:
Early trust-based planning is great, but there’s a limit.
This is especially true of irrevocable trusts, which sound great but limit your access to your assets - locking them away too early may not be desirable. Keeping some flexibility over assets may help as circumstances can change and you may need to access some or change how they are invested.
Beneficiary designations are not a one-time event.
Things can and do change - that’s a reality of existence. If a spouse passes it’s often been the case that the grieving spouse forgets to update beneficiaries which can lead to challenging probate and additional liabilities. Make a point of reviewing beneficiaries every year, and work closely with your fiduciary partners to ensure these details aren’t overlooked and costly damage control is needed down the line.
Estate planning isn’t just for the elderly.
We often think of elderly people planning their estates, but what if a young child lost their parents in an accident? While this is painful even to contemplate you would want a clear process in place for guardianship, insurance and powers of attorney. This becomes more crucial when working overseas as an expat where you are away from family and close friends who can step in quickly.
Effective estate planning can be done discreetly.
I’ve seen a positive trend in recent years where people are more comfortable having uncomfortable conversations. While you may not wish to give them specific details, it’s important to let loved ones know there is a plan in place, and most importantly, who they need to contact should the worst happen.
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