Few of us go through life without encountering some event that calls for a change in a will. It’s important to attend to these matters promptly to avoid any complications or omissions later on when it’s too late and a change might not be possible. Below are some of the more common events that should trigger a call to your estate planning attorney:
- Addition of a new child. The impending arrival of a first child often triggers getting a will prepared in the first place. New grandchild? You may want to revisit your will or beneficiary designations, as well.
- Marriage of a child. This may be particularly important if you’re less confident than the betrothed of the strength of the marriage.
- Problems arise with a beneficiary. If a beneficiary develops a problem that may jeopardize an inheritance (substance abuse or creditor problems, for example) action should be taken now to arrange for control of eventual distributions, typically through a trust.
- Chosen executors or beneficiaries die. While your will may have provided for successor executors and beneficiaries, it’s prudent to review all designations if one dies or becomes disabled.
- Financial circumstances change. Changes in your money status, particularly if it’s for the better, may call for changes in your financial and estate planning strategies.
- Contemplating divorce. Don’t delay and risk some unintended outcomes like dying before the divorce is finalized, as then “the ex” will receive the entirety of your estate. Once the divorce is final, update your will to name new beneficiaries.
- A new marriage. The sound of wedding bells offers much excitement. Remember to update your will accordingly. If your former spouse is noted in an outdated will, this could make for a complicated and messy settlement for your new spouse after your passing.
- Changes in federal or state regulations. Whether changes in regulations appear in the news or not, it’s smart to periodically ask your estate planning attorney if any apply to your situation. This applies as well to the effect of any major changes in estate and income tax rules.
- You can’t find your original will. Simple response: get a new one…and don’t misplace it.
Smart Money Tips
- Hardly a day goes by without news of a serious house fire, not to mention, floods, tornadoes, or other calamities. By preparing your household inventory, you might just have a shot a recovering your valuables. A list of your possessions does not have to be fancy or time intensive. It might only consist of a bunch of camera shots or a video of your sundry possessions, but this can go a long way toward assuring a fair and full insurance settlement should the worst happen. Abundant worksheets and websites are available to help you prepare and maintain your inventory. While the contents of these websites are often housed in cloud storage, you will want to print a copy, and store it in a safe location as well. By the way, don’t store that household inventory in your house, for the obvious reasons.
- Vacation home follies. The temptation to buy a vacation home rises with the temperature. If you really want to buy one, high season is the worst time to do so. Rather, wait until the tourists are gone, the weather’s lousy, and the sellers are anxious. By the way, don’t buy a vacation home thinking that you’ll get a lot of money renting it. Sometimes it works as a rental, but usually it doesn’t pan out very well, despite the breathless attestations of the owner or broker who are united in desperation to unload the property.
Food for Thought
With parsimony a little is sufficient; without it nothing is sufficient; but frugality makes a poor man rich.
–Seneca
Money Can Be Funny
There’s another advantage in being poor. The doctor will cure you faster.
–Jacob Braude
Word of the Week
lethean (lee-THEE-uhn) adjective – Anything pertaining to, or causing, oblivion or forgetfulness of the past.
Origin: From Greek mythology. The river of Lethe is in Hades and drinking its water causes loss of memory. The Greek word lithi means “forgetfulness.”
He couldn’t remember his colonoscopy because of the lethean effect of the drugs.