What is Estate Planning & Do I need an Estate Plan? Estate Planning is the term used for getting your affairs in order and includes naming beneficiaries on life insurance or retirement accounts as well as more complicated tasks like setting up a trust to hold assets for a minor child upon your passing to ensure they have funds for their care. Estate Planning is not just for those with a high net worth. In fact, everyone should have some plan in place even if it is just a health care proxy or a simple will nominating a guardian for a child. Having a health care proxy, durable power of attorney, an emergency guardianship proxy (for minor or adult disAbled children), naming beneficiaries, having a Will with a nominated permanent guardian for a child will all help to substantially lower the amount of legal costs and stress on your loved ones. Without these documents, a court proceeding would be needed if you were incapacitated or upon your passing in order for your affairs to be taken care of.

If I already have a Will or other estate planning documents, do I need a new one? It depends - do the provisions of your current Will leave your property to those you wish to inherit from you? Do you still want those you named in your documents as your Personal Representative of your Will (aka, Executor), agent under your Durable Power of Attorney and Health Care Agent to serve in those roles? Can I just amend them? You can amend a Will (called a Codicil) and a revocable Trust, but not the durable power of attorney or health care power of attorney for which new, updated documents would be needed.

I just got divorced, do I need a new Will or other documents? Not necessarily. Any provisions naming your ex-spouse will be ignored. However, you do need to update the beneficiary designations of your accounts (like retirement, life insurance, and brokerage accounts) but be mindful that you do not violate the terms of your divorce decree. Your Will does NOT control where those accounts pass after your death; instead, the beneficiary designation dictates how they are distributed. Thus, if your ex-spouse is the named beneficiary, that is where the asset will pass.

My child is turning 18 soon. Do they need an estate plan? Yes, see the New Adults Estate Planning website for more info. Do I need a new Will since I no longer need a guardian named for them? No, the guardianship provisions will no longer apply. Note, however, that once your child is no longer a child, they will inherit your estate with no restrictions. So if you wish for them to receive only part of their inheritance at age 18 and the remainder at a later age, a Trust is recommended.