We know that some families think they are ready when, in fact, they have a few details to finish. Any planning left undone could make estate administration much more difficult or expensive for the family. Examples of unfinished items could include:
These items would be caught during a “stress test” of your planning, which is why this exercise is so important.
What is Involved in Testing my Estate Plan?
Stress testing your plan is a three-step process, and includes:
Completing Step One in Stress Testing Your Estate Plan
1. Are Your Powers of Attorney Documents Complete and Recent?
Documents more than three to five years old may be rejected by third parties who are unsure the documents still reflect your current wishes. At least every three to five years, sign a new:
2. Do the Right People Know Where to Find Your Information?
Your important documents and electronic access information should be collected and stored in secure places that multiple people, such as family members, family office staff or attorneys, are aware of and that can be accessed in a crisis. Someone besides your spouse or significant other should know the location (in case you are in an accident together).
3. Is the Pre-planning for Your Funeral/Memorial Completed?
While we don’t like to think about our own mortality, it will certainly make your family’s life much easier if you have completed your funeral planning in advance. That will allow the family to grieve together and support each other when the time comes instead of arguing over the best way to memorialize you. Ensure that:
4. Do You Have a Plan for Distributing Your Personal Property?
To avoid family discord after your death, it is best to have a list in place detailing the distribution of items of special significance, such as jewelry or keepsakes, that you wish to go to specific people or for items over which you think family or friends may fight.
If you have already created this list, check it periodically to make sure you still own these items, and the list still reflects your wishes. It is truly aggravating for an executor who cannot find something that you indicated should be given to a loved one. The executor will have no idea if the item is lost or if you previously sold it or gave it away. For more information about planning for your personal property, see our previous blog post, Who Gets Grandpa’s Guitar Pick Collection?
It May Be Time for a Stress Test of Your Estate Planning
If you haven’t performed any testing of your planning, or if it has been several years since you have done this, it is worth doing this year to ensure that nothing has been missed in your planning, and your plan will operate as intended when the time comes.
Warner can help you with this process. Contact your estate planning attorney, or Mark Harder or Nina Lucido, for assistance in conducting a stress test of your planning.
