8 Life Stages of Estate Planning: Part 2

The joys of parenting

If you have children, update your will to nominate a guardian to step in if you and your spouse pass away. Include provisions in your will or a separate revocable trust so that your child doesn’t inherit everything at the age of 18.

A revocable trust allows you to appoint a trustee to handle any money your child inherits. The trustee can use it to support your child as the child grows up, and you can specify at what age your child can receive the money, along with any reasons your child should get it before that age, such as starting a business or buying a house. You can also specify that the trustee can withhold money if your child has a gambling problem, is in the midst of a divorce, or there’s another situation that makes it inappropriate to inherit.

You’ll also need a separate guardianship nomination that nominates a guardian to care for your child if both parents are incapacitated. That’s helpful in simpler situations as well, such as when both parents take a vacation and a child needs emergency medical treatment.

Each time you have another child, be sure your estate planning documents address all of your children, and don’t forget to increase your life insurance.

“Sing it, Tammy Wynette: D-I-V-O-R-C-E

If you’re separating or divorcing, it’s unlikely that you want your spouse to have the authority to make decisions on your behalf and access your medical and financial information. Revoke those documents, including beneficiary designations, or sign new ones. A divorce decree doesn’t magically change those things.

If you remarry, revise your will and trust documents to reflect the proper beneficiaries. Most people want to share with their new spouse but also want to provide for their separate children at their death. Determine which assets you want to leave to your spouse and which to leave to your children.

The middle ages

As you approach your 40s and 50s, consider purchasing long-term care insurance, which will cover the cost of long-term care or a nursing home.

The golden years

Review your life insurance to determine whether you can reduce it if your children are grown. Also, review designations on your durable power of attorney, health care proxy, and HIPAA release to ensure the people you’ve named are still in your life and willing and able to serve in that role. At this stage, it is common for people to start planning their funeral to make sure that’s in order.

Contact Michigan Estate Planning Lawyer Christopher Berry to ensure your estate plan is secure and in place.

Read more:
http://finance.yahoo.com/news/8-life-stages-estate-planning-080013261.html

Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas ofestate planning, business, probate, veterans benefits & Medicaid planning. Follow Christopher on Twitter@chrisberryesq.