Here are some things to think about in regards to your estate planning documents during a crisis. The most recent example of a crisis that affected all of us was in 2020 and 2021 when COVID was in the depths of causing physical harm and financial havoc around the world. We were all trying to do our best to make things better and get through it. Anyone who had their estate planning documents in place or quickly got them in place were in a better position to help their family out just in case something awful had happened to them. But of course it’s not just another potential pandemic that could be the next crisis in your life.
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First of all, make sure the appropriate people know where your documents are located and that they are able to access them properly. For example, if you have them stored in a safety deposit box at a bank, then it would be ideal to talk to the bank about giving someone you trust the ability to access that box. If you were to get severely sick or heaven forbid worse, it would make it a lot easier for your loved ones to take care of thins if they can easily access these very important documents.
Second of all, you need to make sure your documents are up to date and say what you want them to say. Over the years I’ve heard some very sad stories where a loved one passed away before they made some significant changes to their Will that they had expressed they wanted to do. When this happens there is nothing that can be done in hindsight. Words spoken in the past cannot change anything in a courtroom. Those assets will go where the Will says they should go, for better or for worse.
Likewise, you need to make sure the named executor for your Will, the agents for your Durable Power of Attorney and Medical Power of Attorney, and named guardians and trustees for your children, etc. are who you want them to be. Things and relationships can change drastically over time. Make sure you have named the right people for the right jobs.
Lastly, make sure your beneficiary forms on your bank accounts, investment accounts, life insurance, etc. say what you want them to say. I hear even more sad stories about these forms than I do about old Wills that were never updated. If those beneficiary forms say the assets are supposed to go to some certain person or persons, then, except for very few exceptions, that’s exactly where they are going to go upon your passing. Even if you have a Will that says otherwise, these beneficiary forms will dictate where those assets go.
Yes, there are many things in life that are out of our control. But having fully updated estate planning documents IS something that you can control. Please take advantage of that.
