Caring.com reports that roughly two-thirds of Americans do not have an estate plan. Do you identify with the minority of U.S. adults with a will, living trust or other end-of-life documents? If so, you may think you’ve got this covered. However, you might want to think again. A living set of documents, estate plans are living and should be regularly reviewed and updated. Thus, even the vigilant sometimes miss items like beneficiary designations for retirement accounts or life insurance policies.
Your estate plan relies on and applies to others. As such, consider not only what might happen to you, but what might happen to beneficiaries and designated decision makers. Also, consider other aspects of your estate plan. The best-laid plans often go awry. But paying attention to small details can help ensure your wishes remain intact.
Backup Decision Makers
- Personal Representative
The person you appoint to administer your estate through the probate process after you pass away - Trustee
The person you name to manage your trust’s money and property - Guardian
Somebody to whom you grant legal responsibility to care for your children, including adult children who lack the capacity for self-care - Power of Attorney (POA) Agent
A chosen individual with legal authority to handle medical or financial affairs on your behalf if you become unable to do so
Do not take the task of choosing these crucial decision makers lightly. They will exercise considerable control over you and your affairs. As such, make sure they remain willing (and able) to do what you are asking of them. A complete estate plan includes not only a first choice, but two backups for each of these positions.
End-of-Life Matters in a Complete Estate Plan
Regularly reevaluate your choice of trusted decision makers. What’s more, name backups in case you are unable to amend your will, trust, or other estate planning documents. Alternatives guard against catastrophic failures in the chain of command which could leave crucial end-of-life matters to the courts.
A Complete Estate Plan includes Pets
Many pet owners consider their furry (and feathered and scaled) friends part of the family. After all, your pets rely on you even more than your children for their daily needs. Consider who will look after them if you are unable to do so.
In addition to naming a legal guardian for your children, name one for your pets. Provide a list of alternatives in case your first choice is unavailable. Also, leave instructions for how your loved ones might look for a suitable home or shelter if your caretaker is unable to assume custody of your animal.
Contingent Beneficiaries in a Complete Estate Plan
A beneficiary is someone you name in your complete estate plan to inherit your money and property. This includes bank accounts, investments, and insurance policies. Therefore, executors will manage these accounts and property and make distributions. You may also need a backup beneficiary if:
- The primary beneficiary predeceases you.
- The court cannot contact the primary beneficiary.
- The primary beneficiary refuses their inheritance.
Without a contingent beneficiary, the court could take over your money and property. What’s more, probate could be required, which can delay distribution. Avoid these outcomes if possible.
About Skvarna Law Firm in Glendora and Upland, California
A skilled attorney can assist with your estate plan. Contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. We provide legal services for individuals living in San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
