Your Estate Plan is in Place...Now What?
We’ve discussed your family dynamics, your pets, and your hopes for the future of the beneficiaries of your estate. We’ve reviewed and revised your will and your trust. Your estate planning documents are dated, printed, and finally signed. And now… what? Here is a quick word of advice on a necessary step to take after the execution of your estate planning documents.
Complete beneficiary designation forms for all of your assets, and make sure those designations align with your estate planning documents.
If you have an estate plan in place, you need to use the plan. Clients often believe that once their estate planning documents are signed, the documents are simply going to control the distribution of their property. This is typically not correct. If you have an individual or organization designated as the beneficiary of an asset, that asset is likely going to pass to the named individual or organization, despite the fact that you have a fully functional estate plan in place.
If an asset does not have a designated beneficiary, that asset will be distributed pursuant to terms of your Will. The only purpose a Will serves regarding property distribution is to be submitted to a court to ensure that assets are distributed pursuant to the terms of the will. That process is called probate. Having a will does not avoid probate. Having designated beneficiaries for your assets avoids probate.
If your intention is for all of your assets to pass to a newly created trust, you must name the trust as the beneficiary of all of your assets (whether the primary or contingent beneficiary is fact-specific). If your intention is for all of your assets to pass to your spouse or children, you must name your spouse or children as the beneficiary of all of your assets.
The best time to ensure your assets will pass according to your estate plan is shortly after you have completed your estate plan. It is easy to procrastinate on updating beneficiary designations, life gets busy, and the next thing you know, it has been months or even years since you finalized your estate plan. Remember – your plan is only going to work if you use it.
If we can be of any assistance, don’t hesitate to reach out - https://www.pappasgibson.com/connect