Estate Planning: An Ongoing Lifetime Process

 

Many of us get caught up in enjoying our day-to-day lives that we forget to pay attention to the rapid changes that naturally come in the course of our lifetimes. We wish to bring your attention to such changes, all of which would deserve a review of your current estate plan; or if you do not have one in place, will educate you on the necessities of estate planning.

 

Who is the beneficiary of your assets?

Wills are not just for the well-off. Whatever you have can only be transferred to your beneficiary through a written document or a will; therefore writing a will is the most important aspect of any estate plan. A will is a primary document aimed at transferring your assets upon your death. You are the one to decide which assets you’d like to transfer, and who inherits them.

 

Also, there are some assets that cannot be transferred to your beneficiary by a will alone. These include life insurance, IRAs, annuities, and retirement plans since they are directed by the beneficiary form where you specified who is to inherit your assets in case you are gone. You can update these beneficiary forms regularly and by doing so you are on the right track in estate planning.

 

Marriage or Divorce

If you wrote a will when you were single and you are now married, your will is automatically void. Further, you may want to update your documents so that your new spouse is the primary decision-maker with regard to your health care and financial decisions if you are unable to make them yourself.

 

If you were married and are now divorced, your marital trust and will are automatically void. However, your durable power of attorney and advanced health care directive, which usually names your ex-spouse as the primary decision-maker, is still in tact. Hence, you may wish to nominate other individuals to make these decisions for you in the event that you are unable to make them yourself.

 

Purchase of a New Home or Change in Asset Structure

 

Every time you acquire a new asset, whether a life insurance policy, home, or any other form of investment, consider amending your estate plan. The Law Offices of Irina Sherbak, APC, a San Diego Estate Planning firm would be glad to assist you in every aspect of estate planning.

 

In Case of Failing Health

 

If your health is failing, you should check your health care agent nominations to ensure that you are comfortable with the individuals you currently name to make medical decisions for you in the event that you are unable to make them yourself.

Family

Disagreement over assets remaining after a person’s death is very common. A trust, accompanied by a will, directly states how you would like your beneficiaries to inherit, eliminating hostility between family members during the difficult time after a loss of a loved one.

 

Your Current Responsibility

 

If you have beneficiaries or family members with special needs, you may want to plan for the continuation of the care even after you pass. It is wise to revisit your estate plan every few years to ensure that the continuing care of your special needs beneficiary is in accordance with your wishes.

 

Your E-Assets

 

Modern technology has enabled us to acquire electronic assets, such as websites that generate income, online bank accounts, trading accounts, medical accounts, insurance accounts, and social media. With all of these digital assets integrated into our daily lives, it is of great importance to realize that your online assets should therefore be integrated into your estate plan.

 

Solutions to Estate Plans

 

With the help of a lawyer, you will be able to transfer assets, bank accounts, retirement funds, or any other property or accounts to your loved ones, bypassing the costly and lengthy probate process.

 

Estate planning is a lifetime process

 

Estate planning is not a fixed process. Estate plans must be reviewed and revised from time to time to meet changing situations.

 

In summary

 

Estate planning is the only way to ensure that your assets are passed successfully to the people who matter most in your life after you are gone in the most financially efficient and tax-effective way possible.

If you’d like to learn more about the importance of estate planning, or you have other estate planning questions, contact The Law Offices of Irina Sherbak, APC, a San Diego estate planning lawyer that you can trust.