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5
ESTATE PLANNING
Common
Pitfalls
of an Outdated
Estate Plan
ESTATE PLANNING
I
often fi nd myself reassuring clients who feel guilty and embarrassed
for not updating their estate plan when a major life event occurs;
however, I fi nd it more common for someone to have never created
a plan in the fi rst place. Do you remember the last time you reviewed
your estate plan? After you were married? Or after the birth of your fi rst
child? Maybe 30 years ago when your children were young. Or was it
prior to your second marriage?
Most people respond to my question “Who is your fi duciary?” with
a blank stare. A fi duciary is a person or entity you have appointed to
legally control your assets when you become unable to do so. Legally,
the fi duciary has to act in your best interest when serving as your
A C onCierge L Aw F irm
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Wills, Power of Attorney,
Trusts
s Guardianships:
s Guardianships:
Minor, Incapacitated
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s Special Needs Planning
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Planning
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Administration
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Power of Attorney, Executor and Trustee. Keep in mind that this role can
be removed if a court feels that the person is taking advantage of the
situation. But, you have to ask yourself whether the person you have
named is capable of acting in this capacity. Just because you’ve named
your child doesn’t mean that he/she is the savviest when it comes to
money.
Other questions to ask yourself about your fi duciary: Is he/she age
appropriate? Are you still in touch with the person? Is he/she still alive
and in good health?
The second pitfall is if you haven’t updated your documents since
your child(ren) were small and now they are all grown up. They may
not require a guardian, but do they require a trustee to hold and invest
their inheritance if they aren’t as mature as you’d like them to be.
Perhaps they have a history of drug and alcohol addiction, gambling,
bankruptcy, poor marriage choices, etc. These are triggering factors for
naming a trustee to hold their share in trust until they meet conditions
of having their inheritance released to them.
Another pitfall to consider: Are your documents up-to-date with
the current law changes? Are your documents HIPAA compliant? The
fi nancial power of attorney law change is the most recent, with an
eff ective date of January 1, 2015. If you have not had a professional
review your documents, and possibly revise them, then you may be in
for a rude awakening in the future.
A big issue for most clients is they’ve accumulated more wealth
since originally drafting their estate plan. The more money you have
the greater impact n ot having an appropriate plan will cause. Not
everyone should have a basic will. A revocable living trust holds the job
of avoiding probate for those assets that normally would pass through
probate upon your passing. The reason being, it avoids the average
time of one year and the cost associated with opening an estate.
Lastly, what state do you hold residency? Many of my older clients
relocate or become “snow birds.” Does your plan conform to that of the
laws of your true state of residency?
Contact Conti Law to review your Estate Plan.
This Industry Insight was written by Attorney Michele P. Conti,
an estate planning and elder law attorney.
Michele attended Allegheny College in Meadville, Oxford
University and Duquesne University School of Law, and received
her LL.M. in Taxation from Villanova University.
724.784.0239
BETHEL PARK
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FALL 2018
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