Hello my lovelies! Eileen Kerlin Walsh from Kerlin Walsh Law here to talk about when you should begin estate planning and when to update your estate plan. There are three big stages in life when I have seen clients begin to plan.
- You should get an estate plan in place when you have a child
- We’ve seen our clients get an estate plan in place later in life when they have acquired assets and their children are grown
- Sometimes, our clients wait until the end-of-life to get an estate plan in place
However, whenever you do decide to begin estate planing, remember it’s unrealistic to think that a piece of paper you draft, reflecting your life at a certain time, will work when your life has completely changed some years later. Let’s use the Kendrick family as an example.
(This is a hypothetical example, but does reflect situations we experience on a daily basis)
Meet the Kendricks
Meet Bill and Karen Kendrick. They got their first estate plan in place when their daughter, Jessica, was born 30 years ago. They updated it when their son Steve came along 4 years later. After attending one of our living trust seminars 10 years ago, they put a fantastic Trust-based plan in place, protecting themselves, their children, their grandchildren, and their dog, Sadie.
But over the years, their life changed and their family grew! Unfortunately, their estate plan did not reflect their current wishes. Here’s some changes that occurred over the last 10 years.
- Jessica and Steve are now adults and have graduated from college.
- Jessica is married and has two daughters. One of the girls may have autism.
- Steve is also married, and he and his wife are expecting their first child.
- Karen’s mother is now living with Bill and Karen.
- Bill and Karen bought a vacation home in Florida.
- Sadie had a litter of puppies but has since passed away. Bill and Karen kept two of the puppies.
After discussing these wonderful and sad life milestones with the Kendricks, they knew it was time to update their plan. They were at another stage in their lives and needed to ensure that their Trust reflected their current wishes. They established a Special Needs Trust for their granddaughter and a Pet Trust for their two puppies. They also wrote their vacation home into their Trust and made Steve and Jessica the Trustees of their estate.
Changes in Your Own Life
As I said above, the Kendricks have experienced a lot of changes, and those changes are typical of what 10 years brings. Think about the changes in your life over the past 10 years — or since you last updated your estate plan.
Have you moved? Do you have more children or grandchildren? Have you started a business, suffered health problems, or purchased a new home? Do you have new accounts and investments? Do you now care for a parent, pets, or dependent children? Have you remarried, gotten divorced, or retired? Has someone you loved died? Have friends or family named in your plan as trusted helpers moved away, or has your relationship changed? Are your children now adults and able to help you? Do you want to help with grandchildren’s college or dance lessons? Do you see the world in a different way?
I pose these questions because your estate plan needs to reflect the changes in your personal life, financial situation and goals. In addition to changes in your life, there have also been changes in the law. At Kerlin Walsh Law, we stay up-to-date on these changes to protect our clients and update theirs plans accordingly!
What Should You Do If Your Estate Plan Out of Date?
If you’ve experienced changes like the Kendricks, or it’s been more than 3 to 5 years since you updated your estate plan, it’s time to come in. If you live in or around Chicago, Oak Lawn, Palos Heights, Palos Park, Palos Hills, Hickory Hills, Chicago Ridge, Worth, Evergreen Park, Alsip, Crestwood, Orland Park, Beverly, Mt. Greenwood or Tinley Park, give us a call at 708.448.5169 to review your plan and discuss what’s been happening in your life.
We’ll ensure your estate plan reflects where your life is now and give you the peace of mind you deserve!
