Establishing a will and/or a trust is an important step when determining ones wishes but it is just the first in an on-going process. There are plenty of reasons to review a will or trust periodically including:
- Marriage and/or divorce
- Birth of a child or grandchild
- Your financial situation has changed
- Purchase of a newly acquired property
- A move to a different state
- Marriage or divorce of a child
- Retirement
- Long-term illness
- Death of a spouse, child, or another intended beneficiary
Rehoboth Beach attorney Rebecca Doyle of Doyle Law says that a trust should be funded with assets. “Any assets that are not in a trust, and that don’t have a joint owner or beneficiary designation, will come into an individual’s estate, may be subjected to probate, and then distributed in accordance with the individual’s Last Will and Testament (if a valid Will exists) or otherwise in accordance with intestate law,” she says.
A Durable Power of Attorney allows a named person to handle the principal’s property and legal affairs when effective. An Advance Health Care Directive allows a named person to make the principal’s health care decisions if they are deemed incompetent to make their own medical decisions. “Without these documents, we would have to go to court if an individual became incompetent and we needed to get an agent appointed to assist them,” Doyle said.
Doyle urges clients to keep important documents up-to-date and to make changes after certain events occur to ensure that assets will be distributed according to one’s wishes when he or she passes. “Updating your will can also help prevent family squabbles over inheritance down the road,” she says.
Len Hayduchok of Dedicated Financial also urges individuals to periodically review their finances and assets in relation to estate planning. Hayduchok says that people should have continuous awareness of their financial situation. He suggests that asset holdings should be reviewed quarterly and that a full financial review should be completed annually
Legal documents related to estate and end of life planning should be modified when life changes occur (such as deaths and births of individuals who may be added or deleted. The above list applies here as well. “An in-depth review of legal documents should be done every 5 years,” noted Hayduchok.
He points out that people tend to procrastinate doing anything they are unfamiliar or uncomfortable with that requires extra mental energy, Hayduchok urges people to “look at financial planning as empowering and surround themselves with individuals who can provide them value in improving their financial outlook and motivate them to make plans and take actions that will make a positive difference in their lives”.
He also notes that retirement planning is primarily an income story—making sure income needs are met throughout retirement years and the desired standard of living. Other disciplines of financial planning impact lifetime income such as growing wealth that can generate income in the future, reducing taxes to provide more after-tax income, neutralizing risk that could decimate wealth and the ability to generate future income,
And since it is tax season, Hayduchok points out that tax planning impacts virtually all aspects of financial planning, as taxes impact the growth of wealth, the amount of after-tax money available to spend and estate taxes. Tax planning is an integral part of full financial planning.
As you continue your journey, Doyle and Hayduchok have some resources to share. Doyle Law’s site has a page dedicated to Estate Planning, with the option of a free consult. Hayduchok also offers free resources on his “Legacy Planning” page with several videos on the topic, as well as a Latter Life Checklist to guide you through your planning.
By Mary Jo Tarallo, Resident Journalist
Mary Jo Tarallo spent much of her career in public relations with various non-profits and spent 40 years involved with the ski industry as a journalist, public relations director for a national trade association and as executive director of the Learn to Ski and Snowboard initiative. Prior to her ski industry involvement she worked for the Maryland International Center in Baltimore and United Way of Central Maryland. She won a Gold Award for TV programming for a United Way simulcast that starred Oprah Winfrey. She has been cited for her work by numerous organizations. Mary Jo grew up in Baltimore, attended the University of Maryland and Towson University, lived in Washington, DC for 21 years and has been a full time resident of Rehoboth Beach and Milton since May 2019.
