“You should review and update your estate planning documents as personal situations change and, at a minimum, every five years.”
Wilmington (NC) Insights’ recent article, “Signs Your Estate Plan Needs a Lift,” shares some common indicators that you may need to visit your attorney and review your estate planning documents.
Unsigned documents. These aren’t enforceable until they’ve been properly executed. Poor planning and out-of-date documents may be worse than no plan at all, so be certain that all of your estate planning documents are up-to-date and have been fully executed. The executed documents should then be placed in a lock-box or given to a trusted advisor.
Untitled or incorrectly titled assets. If you are using a trust, you have to follow through with your plan by titling assets in the name of the trust. If you fail to do so, assets outside of the trust will be disposed of by your will or, in the case of life insurance, to the named beneficiary.
Putting family members in charge. Naming family members as power holders can create problems. Naming family members as your executor or trustee needlessly puts them in the line of fire. Allowing a third party to take the heat in carrying out your wishes, may not be popular with some family members.
Leaving assets outright to beneficiaries. This inheritance you wanted to pass to your heirs can be unprotected from creditors, divorcing spouses, and lawsuits. This is critical if you have an heir who has physical or other disabilities. He or she should have a Special Needs Trust.
Beneficiary designations. These need to be up to date. Review your beneficiary designations for life insurance policies, 401(k) plan, 403(b) accounts, annuities and IRAs. Changes in the lives of your family such as deaths, marriages, births, divorces, and the like could have a big impact on your estate plan.
Reference: Wilmington (NC) Insights (November 29, 2016) “Signs Your Estate Plan Needs a Lift”