February 2021 Issue: Common Issues Planners may Identify in Clients' Estate Planning Documents-Common Issues Planners may Identify in Clients' Estate Planning Documents by Martin M. Shenkman

Common Issues Planners may Identify in Clients' Estate Planning Documents by Martin M. Shenkman

Pdf Summary

As a financial advisor, there are several areas of common issues that you can spot in your clients' estate planning documents. The first area is the obvious one - clients often overlook updating their documents after major life events such as marriage, divorce, or the birth of a new child. It is important to make sure that these changes are reflected in their estate planning documents to avoid any potential disasters.<br /><br />Another area is the client's financial position. If there has been significant growth in wealth, it may require new planning documents to ensure that the client's assets are properly protected and distributed.<br /><br />A change in domicile (moving to a new state) also requires the creation of new documents under the new state's laws.<br /><br />It is also crucial to ensure that clients update their documents after a divorce. This is often overlooked, but failing to do so can have serious consequences.<br /><br />The age of the client is another factor to consider. Aging clients need different and more comprehensive planning than younger clients. Documents should be updated to reflect the evolving needs and concerns of older clients.<br /><br />The age of the documents themselves should also be taken into account. Old documents may be viewed as stale by third parties, and laws and circumstances may have changed since they were drafted. It is recommended to check documents every 10 years.<br /><br />Major changes in the law, such as changes in the estate tax exemption, should also prompt a review of the client's estate planning documents. It is important to stay up to date with these changes and inform clients accordingly.<br /><br />Lastly, organization and coordination are crucial in estate planning. It is not enough to have the right documents if the assets are not properly transferred or if basic administrative matters are overlooked. Making sure that everything is in order and properly organized is essential for a successful estate plan.<br /><br />While financial advisors can identify many issues in clients' estate planning documents, it is important to collaborate with the client's other advisors to ensure that nothing is missed and that all aspects of the plan are properly addressed.

Keywords

estate planning documents

updating documents

major life events

financial position

change in domicile

updating documents after divorce

aging clients

reviewing documents

major changes in the law

organization and coordination