While I typically write about the importance of executing estate planning documents, knowing what to do with them after they are signed is even more important! Estate planning documents should not be considered those you “set and forget.” They should be revisited regularly, and some documents, such as Trusts, even have little use unless they are properly funded during life.
So, what should you do next? Here is a non-exhaustive checklist to ensure you are taking advantage of all your estate plan has to offer:
1. Fund your trusts and update beneficiary information as recommended by your attorney.
Ask your attorney what assets he/she recommends be held by the trust and how to transfer them. For example, if you have created a Revocable Living Trust to avoid probate, simply indicating on the trust document what assets are “owned” by the trust is insufficient. The asset title (ownership) needs to be transferred to the trust.
2. Advise your Executors, Trustees and Agents that you have appointed them and let them know where your documents are stored.
Hopefully, your nominated executors, successor trustees and agents have been informed you’ve appointed them and have agreed to act in these capacities. Make sure they know what their role is, what your expectations are, and where they can locate the information (and documents) necessary for them to handle your affairs. I recommend providing them with the contact information of your estate planning attorney, accountant and financial advisor(s) and perhaps even copies of the documents you have executed, if appropriate.
If your attorney has retained your original estate planning documents in his or her files, make sure your agent under your Health Care Proxy and your nominated executor/trustee know how to obtain said original documents should they be necessary. Many attorneys will require a death certificate to be received before releasing an original Last Will and Testament to anyone but their client.
If you are in possession of your original estate planning documents, I recommend keeping them in a fire-proof safe in your home. While keeping them in a safe deposit box at your local bank may seem logical, this can cause delays and headaches as your executor would need to obtain authorization from the County Surrogate’s Court to open and search the box for your Last Will and Testament after your demise.
It is also prudent to keep digital copies of your estate planning documents, recent bank account statements, doctor’s records and tax returns in an accessible and password protected folder on your computer. Make sure your trusted agents have this password or know where it can be located.
In the event you do not advise your family of your estate plan or they cannot locate your documents or the attorney who prepared them, your assets could be distributed upon your passing based on New York State intestacy laws (i.e., to your next of kin) and not in accordance with your wishes.
3. Review and update your estate planning documents at least every 5 to 10 years.
The key to a successful estate plan is revisiting your plan to make sure it continues to comply with your wishes, current law and to confirm you have taken the necessary steps to implement your plan. There are a number of life changes that necessitate updating an estate plan; relocating to a new state; being married, divorced, widowed, or retired; or starting a new job and/or career. These are all logical and important times to meet with an attorney and review your documents for any necessary updates.
Additionally, New York Laws, especially those affecting estate taxes, Medicaid eligibility and the laws surrounding the proper execution and form for a New York Power of Attorney change regularly. If it has been a number of years since you updated your POA and reviewed the value of your estate, I strongly urge you to do so.
Lastly, if you use different estate planning counsel when you update your documents, I recommend obtaining your “old” documents from your prior attorney or advising him/her you have revoked said documents and have executed new ones. Having multiple sets of estate plans with different attorneys can lead to confusion, especially if the incorrect counsel is contacted after your demise. So keep your loved ones in the loop!
Lauren C. Enea, Esq. is a Senior Associate at Enea, Scanlan & Sirignano, LLP. She concentrates her practice on Wills, Trusts and Estates, Medicaid Planning, Special Needs Planning and Probate/Estate Administration. She believes that it is never too early or too late to start planning for your future and she enjoys working with individuals to ensure that their plan best suits their needs. Ms. Enea received a B.S. in Business Management from Quinnipiac University graduating Magna Cum Laude and a J.D. from the Pace University School of Law graduating Summa Cum Laude. She is admitted to practice law in New York and Florida. She can be contacted at 914-948-1500 or www.esslawfirm.com
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27 Aug 2024
0 Commentssigned estate plan- what next?
While I typically write about the importance of executing estate planning documents, knowing what to do with them after they are signed is even more important! Estate planning documents should not be considered those you “set and forget.” They should be revisited regularly, and some documents, such as Trusts, even have little use unless they are properly funded during life.
So, what should you do next? Here is a non-exhaustive checklist to ensure you are taking advantage of all your estate plan has to offer:
1. Fund your trusts and update beneficiary information as recommended by your attorney.
Ask your attorney what assets he/she recommends be held by the trust and how to transfer them. For example, if you have created a Revocable Living Trust to avoid probate, simply indicating on the trust document what assets are “owned” by the trust is insufficient. The asset title (ownership) needs to be transferred to the trust.
2. Advise your Executors, Trustees and Agents that you have appointed them and let them know where your documents are stored.
Hopefully, your nominated executors, successor trustees and agents have been informed you’ve appointed them and have agreed to act in these capacities. Make sure they know what their role is, what your expectations are, and where they can locate the information (and documents) necessary for them to handle your affairs. I recommend providing them with the contact information of your estate planning attorney, accountant and financial advisor(s) and perhaps even copies of the documents you have executed, if appropriate.
If your attorney has retained your original estate planning documents in his or her files, make sure your agent under your Health Care Proxy and your nominated executor/trustee know how to obtain said original documents should they be necessary. Many attorneys will require a death certificate to be received before releasing an original Last Will and Testament to anyone but their client.
If you are in possession of your original estate planning documents, I recommend keeping them in a fire-proof safe in your home. While keeping them in a safe deposit box at your local bank may seem logical, this can cause delays and headaches as your executor would need to obtain authorization from the County Surrogate’s Court to open and search the box for your Last Will and Testament after your demise.
It is also prudent to keep digital copies of your estate planning documents, recent bank account statements, doctor’s records and tax returns in an accessible and password protected folder on your computer. Make sure your trusted agents have this password or know where it can be located.
In the event you do not advise your family of your estate plan or they cannot locate your documents or the attorney who prepared them, your assets could be distributed upon your passing based on New York State intestacy laws (i.e., to your next of kin) and not in accordance with your wishes.
3. Review and update your estate planning documents at least every 5 to 10 years.
The key to a successful estate plan is revisiting your plan to make sure it continues to comply with your wishes, current law and to confirm you have taken the necessary steps to implement your plan. There are a number of life changes that necessitate updating an estate plan; relocating to a new state; being married, divorced, widowed, or retired; or starting a new job and/or career. These are all logical and important times to meet with an attorney and review your documents for any necessary updates.
Additionally, New York Laws, especially those affecting estate taxes, Medicaid eligibility and the laws surrounding the proper execution and form for a New York Power of Attorney change regularly. If it has been a number of years since you updated your POA and reviewed the value of your estate, I strongly urge you to do so.
Lastly, if you use different estate planning counsel when you update your documents, I recommend obtaining your “old” documents from your prior attorney or advising him/her you have revoked said documents and have executed new ones. Having multiple sets of estate plans with different attorneys can lead to confusion, especially if the incorrect counsel is contacted after your demise. So keep your loved ones in the loop!