MAY 2021
After creating your estate plan, it is likely a load off of your shoulders. But unfortunately, managing your estate does not end with the creation of this plan. In fact, you must stay on top of updating it indefinitely. In order to update your plan, you need to do an occasional review of it to see what areas have changed and in what ways you need to tweak them. But just how often should you do this? Finances Forbes discusses reasons to update your estate plan . They often tie to finances or changes among the people you list in the plan. For example, what if you come into a huge sum of money through inheritance, the lottery or other means? What if instead, you end up falling into debt and losing a number of assets you previously promised others? If that happens, you want your estate plan to reflect the changes. Loved ones and beneficiaries The same goes for the people mentioned in your plan. What happens if a loved one passes away? What happens if you get a divorce from your current spouse, or remarry? What if you adopt or give birth to a child? What if a relative or loved one simply grows estranged for whatever reason? You want to ensure that the right people inherit your assets, and that you remove the people you do not want involved. No big life changes But if there are no significant changes in your life, what should you do? In this case, it is fine to do a quick at-a-glance review once every three or so years. This can help you refresh your memory without you having to delve deeply into the nitty gritty details of the plan when you do not need to.
Many people believe that a will is the best way to provide for their loved ones once they’re gone. While a will offers many important benefits in establishing an asset management plan after death, there are some circumstances under which a trust is a better option for your loved ones. If you have a loved one with special needs, setting up a special needs trust (SNT) can offer huge advantages over setting up direct inheritance. This type of trust is specifically designed with the needs of a special needs beneficiary in mind. Below are three core benefits of an SNT. It’s not technically income. This is an advantage if your child benefits from subsidized housing, Medicaid or other Supplemental Security Income (SSI) support. If a beneficiary’s income is too high, they could become ineligible for SSI. However, by putting your assets in an SNT, the special needs beneficiary is not technically the owner of the assets. You can enhance your loved one’s life. There are specific restrictions on the ways in which money in an SNT can be spent. However, it’s not strictly used for purchasing basic necessities, either. It can also help fund a higher quality of life for your child – beyond what is provided through government benefits. You can use a special needs trust to fund things like hobbies, vacations and furniture in addition to extra support, such as hiring a one-on-one caregiver or a physical therapist. You can create and fund it while you’re still alive. Unlike a will, you can put a special needs trust into effect while you’re still alive. Doing so can help alleviate your own responsibilities as well as ensure that your trustee acts in the way you’ve instructed. As with a will or any estate plan, you want to be absolutely certain that your special needs trust is legally valid. An experienced estate planning attorney who understands the nuance of the law is an important asset in creating such a document.
