Legacy Course Review: Article #10
Review & Refne Your Plan
Source: Apartment News Magazine
By Timothy Gorman
Real Estate Broker/CPA/Entrepreneur
As we reached Week 9 of our ten-week Estate and Legacy Planning class, it was time to shift gears. This week, we focused on assessment, refinement, and readiness. Having explored the major areas of estate and legacy planning over the past weeks, it was finally time to revisit what we’d created, identify gaps, and ensure that each participant’s plan worked in practice, not just on paper.
The week’s session was designed to help participants conduct a full review of their estate and legacy plans. We went through a comprehensive checklist, discussed key “trigger” events that warrant updates, and explored how to run a dry run, or a “fire drill”, to test how the plan would hold up in real life. We also offered the opportunity for a one-on-one review with participants, providing more personalized insights and identifying areas where they could fine-tune their plans for the future.
By the end of this session, participants walked away with a clearer sense of next steps and a renewed understanding of what adjustments or additions were needed.
Throughout the class, I’ve emphasized that a solid estate plan is a living document, something that needs regular updates to stay relevant. This week, that message was front and center. As we dove into refining the plans, it became clear that thorough planning is only part of the equation. Reviewing and revising those plans is just as critical. Whether it’s due to a change in family dynamics, legal requirements, or new financial circumstances, your estate plan should evolve with you.
The checklist we provided gave participants a clear guide to review every element of their estate plan, ensuring that no critical detail was overlooked. Alongside the checklist, we discussed how to store sensitive information securely and maintain access for those who will need it, such as an executor or successor trustee.
Legal Review: Ensuring Order and Accuracy
A big focus this week was on ensuring that participants’ legal documents were in order and up to date. We reviewed the importance of keeping essential documents—like wills, trusts, powers of attorney, and healthcare directives—complete and legally sound. We also emphasized the importance of working with an estate planning attorney to make sure everything complies with current laws and standards.
During the session, we encouraged participants to treat their estate plan as a “living” document, revisiting it regularly to ensure it reflects current wishes and legal standards. Whether you’ve gone through a major life change like marriage, divorce, or having children, or just experienced a shift in your financial or health status, these changes should be reflected in your estate plan.
Financial Review: Aligning Assets
This week also brought attention to the financial aspect of estate planning. It’s important to coordinate with a financial advisor to ensure that all assets are titled correctly and that beneficiaries are updated. Many people overlook this step, assuming that their estate will automatically pass in accordance with their wishes. But without the proper coordination, you might face complications when the time comes to settle the estate.
One of the key takeaways was the importance of asset consolidation. Many participants realized that having multiple accounts spread across different institutions or ownership structures can create confusion and delays.
Tax Implications: Professional Review
As with every major financial decision, taxes are an important consideration in estate planning. This week, participants were encouraged to meet with tax professionals to assess how their estate plan would impact their estate, gift, and income taxes. A tax professional’s insights can help optimize the plan, minimize liabilities, and prevent surprises down the road.
We discussed the strategies available to reduce taxes, such as lifetime gifting, charitable giving, and the use of irrevocable trusts. Having a proactive strategy in place not only ensures tax efficiency but also helps maximize the amount of wealth that will pass on to beneficiaries.
Family Communication: Sharing Your Vision
An often-overlooked aspect of estate planning is family communication. This week, we talked about the importance of clearly sharing your estate plan with family members. So many estate issues arise due to lack of communication, and we emphasized the need for participants to engage in open, honest discussions with their loved ones about their wishes.
Many participants admitted that they had never really thought about how they would discuss their estate plans with family members. We discussed strategies for approaching these conversations with sensitivity and transparency, especially when it comes to explaining difficult decisions. To avoid misunderstandings or potential conflict, it’s essential to communicate your intentions clearly, ideally while everyone is in good health and able to make informed decisions.
Final Adjustments: Refining Your Plan
By the end of the session, participants had the tools to make final adjustments to their estate plans. It’s not enough to simply update your documents every few years—estate planning requires continuous reflection and refinement. Taking the time to process feedback, consider life changes, and factor in the advice of professionals ensures that your plan remains a true reflection of your wishes.
This week’s session also emphasized the importance of designing your estate plan with flexibility in mind. Life changes are inevitable, and it’s crucial to build provisions into your plan that allow for modifications as circumstances evolve.
Looking Ahead
As we near the final week of the class, it’s time to start thinking about how to present your estate plan to your family, advisors, and anyone else involved in executing your wishes. In Week 10, we’ll discuss how to communicate your plan with confidence and clarity, ensuring that everyone understands their role in the process and that the transition of your legacy is as smooth as possible.