When to Review Your Estate Plan 

Life is full of uncertainties we just can’t predict. Turn back time to the holiday season of 2019, and who could have known all that would transpire as a result of the Covid-19 pandemic? But although life is unpredictable and uncertain, that doesn’t mean your plans should be.

We once had a client who had been divorced for many years. During our annual review of his financial beneficiaries, we noticed that his ex-wife had been listed as the primary beneficiary on an annuity.

Despite our encouragement to update that information, the client kept putting it off – thinking there was no urgency to the situation. This continued for several years, until he suddenly passed away in a car crash. All of the proceeds ended up going to the ex-wife rather than the loved ones he truly wished would have inherited the money.

This is all to say that estate planning isn’t a “set it and forget it” project – rather, it’s an ongoing plan that you should regularly check in on and keep updated. If something were to happen to you, there’s no going back.

That’s why we’re walking you through the seven major life changes that warrant an estate plan review, from marriage to inheritance and everything in between. This information is based on the book, “In Case You Get Hit by a Bus: How to Organize Your Life Now for When You’re Not Around Later,” by Abby Schneiderman and Adam Seifer (founders of Everplans*) with Gene Newman.

7 Life Events That Warrant an Estate Plan Update

Estate planning might not be your idea of a good time, but it’s an important part of planning for your future. Whenever you encounter a major life change, you should set aside time to review your estate plan and make any necessary updates. Here are seven such changes:

1. Marriage

Weddings are no walk in the park – between all the craziness of planning and hosting a big event for all your friends and family, finances are likely the last thing on your mind.

But combining two separate financial lives into one is no small potatoes, either. In addition to a will, a few of the things that you’ll want to review and discuss when you get married are:

• Life insurance
• Emergency contact information
• Beneficiaries on health and insurance benefits
• Potential life insurance plans

If you’d like to split your assets between multiple persons, like children and extended family members, it’s even more imperative that you designate your beneficiaries.

2. Divorce

On the other side of the coin, divorce is also a major life event that can heavily affect your financial planning. Whether you wish to completely erase your ex from your will or to leave some funds for them in the future, there may be legal stipulations that dictate what exactly you’re allowed to do.

During and after your divorce proceedings, it would be wise to review several estate planning documents, including:

• Beneficiary designations for life insurance and retirement accounts
• Emergency contacts
• Shared passwords
• Power of Attorney
• Health Care Proxies

These issues become even more important (and possibly complicated) if you’re looking to remarry. An attorney and trusted financial advisor should be able to help answer any of your questions.

I once had a client who we discovered still named his ex-wife as a beneficiary on one of his accounts. We reminded him to update it several times but he never got around to it. One day, he died suddenly and sure enough, his executor had to hunt down his surprised ex to inform her of the money she had inherited.

3. Children

Ah, new babies. They scream, they throw up on you, and they take over your entire life with those adorably chubby cheeks and tiny little fingers.

They also come with a lot of paperwork. Between birth certificates and social security cards, you may be tempted to swear off all documents for anything ever again. But actually, there are probably some important things you still need to fill out some forms for, such as:

• Appointing a legal guardian in the event that you pass away
• Updating your beneficiaries

As your family grows through more children, stepchildren, or even adopted children, you’ll need to revisit these items again.

It’s also worth your while to periodically assess your plans as your children grow older to make sure everything is distributed appropriately – nobody wants a sibling war at your funeral.

4. Deaths

Unfortunately, sometimes life comes to an unexpected early end. Some of the people you’ve named as your beneficiaries, executor or Health Care Proxy might pass on before you do.

Likewise, if the person you’ve appointed as legal guardian of your children isn’t around anymore, you’ll want to put a plan in place to ensure they’re still taken care of in your absence.

In the event that someone named in your estate plan passes away before you do, make sure to update the necessary documents and make those changes as soon as possible.

5. Health Complications

It’s not fun to think about, but if you or your spouse receives a tough diagnosis, you’ll want to make sure everything’s in place before you become mentally or physically incapable of doing so.

A good place to start is with an Advanced Directive, also known as a living will, dictates what you want to happen health-wise if you’re no longer able to make those decisions down the road.

6. New Laws and Regulations

This one is more for the pros than for you, but it’s still important to keep it on your radar.

If there are any major laws or regulations changes that could affect your estate plan, you’ll need to get in touch with your financial advisor or estate attorney.

For example, if a health directive from a previous state of residency will no longer be accepted in your new home state, you’ll need to create a new one.

7. Inheritance

Sometimes extra money unexpectedly comes your way, whether that’s through an inheritance, a salary bump, or even a lucky lottery ticket.

In these instances, you’ll need to review your financial plans (or create a new one altogether). Pricey assets and big bank accounts are worth protecting, and without a plan in place, you risk your family members fighting over your assets once you’re gone.

A proper estate plan is one that changes and grows with you over time, riding out life’s biggest moments and setting your loved ones up for a secure future.

While we suggest you review your estate plan at least annually, these seven big events definitely warrant a phone call to your financial advisor and an extra close look at the plans you have in place. 

Grow with Gasber

With nearly three decades of experience in financial planning, Gasber Financial Advisors, Inc. has the knowledge and expertise to create the financial plan of your dreams – click here to schedule your complimentary “Get Acquainted” meeting today.

Creating an Estate Plan  

We’ve talked about how to organize your finances, your home and even your contacts – now it’s time to dig into the actual pieces of your estate plan: a will, Power of Attorney and trusts. We are not attorneys and nothing here should be considered legal advice; please work with a qualified estate planning attorney when it’s time to create your estate plan.

While paperwork isn’t anyone’s idea of a good time, it’s important to address these elements – no matter your age. As the title of our guidebook for this series implies (see below), no one is guaranteed a tomorrow.

That sentiment hit all too close to home for me when two relatives suddenly passed away at relatively young ages. It reminds me why I’m trying to organize my life in the first place: to ensure my family and loved ones are taken care of when I’m no longer here.

As I went through this section of the organization process, I realized that we had some provisions in our estate plan that needed to be taken out – a special trust for a dependent that need to be removed. Had I not taken the time to organize and review our estate plan, that money would have ended up in the wrong place.

This is all to say that there’s no time like the present. Get started on organizing your life now, instead of when you’re older and may not realize your faculties are failing (or before it’s too late). You don’t want you (or your family members) to be left scrambling to get everything sorted out.

And, of course, for an even deeper look at the organization process, I suggest you pick up a copy of “In Case You Get Hit by a Bus: How to Organize Your Life Now for When You’re Not Around Later,” by Abby Schneiderman and Adam Seifer (founders of Everplans*) with Gene Newman.

Designate a Power of Attorney

A Power of Attorney (POA) is a person you’ve appointed to speak for and make decisions on your behalf in case you are no longer able to do so for yourself (like if you’re sick, traveling or deemed incompetent to make your own decisions). Your POA’s responsibilities can include managing your:

• Bills
• Banking and investments
• Real estate
• Insurance
• Taxes

As you work with an attorney to designate your POA, you can choose to expand or limit the person’s abilities as you see fit. To be clear, your POA’s powers expire in the event of your death – they can only make decisions on your behalf while you are alive (another reason to make sure your will is all in order).

3 Types of Powers of Attorney

There are actually several different types of POAs, so you have options depending on your specific needs.

1. Durable Power of Attorney

This is the most common form. Once you sign on the dotted line, your POA is in effect. As long as you haven’t been deemed mentally incompetent, you can still make changes to this document at any time. Typically, people name someone like a spouse or child to be a durable POA, but it is not limited to relatives, you can also name a trusted friend or a professional fiduciary.

2. Non-Durable Power of Attorney

This type of POA is used for more specific occurrences, like if you’re out of the country and need someone to file your tax return for you. If you are declared mentally incompetent, the document is no longer considered valid.

3. Springing Power of Attorney

This option is similar to the Durable POA, but it only goes into effect if you’re seriously ill, injured or incompetent. It “springs” into actions when needed, but not before or after.

How to Choose your POA

Your Power of Attorney acts as “you” when you can’t – and that’s no small task. How do you choose the right person?

When deciding who you’d like to act as your Power of Attorney, ask yourself these questions:

• Is this person good with money?
• Do they work well with others?
• Are they responsible?

You’ll also want to make sure that whoever you choose is up for the task – working as a Power of Attorney is no small ask, and can be quite time-consuming.

Create a Will

Next up: it’s time to create a will. While a POA goes into effect while you’re still kicking, a will really only matters once you're dead.

A will is a document that outlines what you’d like done with your assets and money after you’re gone. It also allows you to designate someone to take care of your children or other dependents in your absence. A will can be as simple or as complicated as you’d like – it’s up to you.

What does a will cover?

There are some rules surrounding wills, like what you can include and what you can’t. Some of the things a will can include are:

• Cash
• Property
• “Intangible personal property” (stocks, businesses you own, copyrights, etc.)
• “Unproductive property” (cars, artwork, jewelry, etc.)

Things you can’t include in a will:

• Co-owned property
• Anything that already has a designated beneficiary
• Securities willed to someone else
• Digital assets

Digital Assets

Digital assets include non-physical, primarily online assets, such as movies, music, apps, social media accounts, ebooks, emails and texts. While you may want to bequeath some of these items to a loved one in your will, it’s actually a bit complicated to do so.

The problem lies in the companies that provide these assets – in most cases, laws forbid them from disclosing digital assets to third parties. We recommend working directly with an attorney to figure out how to leave behind these items through your will.

Guardians

This one is a toughie – choosing someone to raise your children (besides yourself) isn’t really a happy thought, but it’s necessary to ensure your children are well cared for.

If you’re married, your guardian of choice will likely be your spouse. If you're divorced, it will likely be your ex-spouse.

Which person will make the transition easiest for the kids? Who do you trust most to ensure their health and happiness? Consider their personal values, religious beliefs, lifestyle and location – do those line up with your wishes and what would be best for your kids?

Spend time really thinking through the answers to these questions, while also facilitating open conversations with the would-be guardian.

Executors

Your executor is the person who will turn your will into reality – they “execute” your wishes. Your executor is held legally responsible for making sure your will is carried out accurately and to the best of their ability.

When choosing an executor, it’s wise to think of someone who understands finances, knows how and when to ask for help, and is patient. They’re the ones answering all the questions for you – an unenviable position for most. Who do you think would be up for the challenge?

How to create a will

For simple, straightforward wills, you can actually use online, DIY legal services. This is also a good option if you need to get something in place as soon as possible – it may not be perfect, but it’s better than nothing.

When you’re ready to create your fully-detailed and complex will, it’s time to turn to an attorney. They can help you ensure all your will’s details are exactly to your liking and squared up with any legal guidelines you need to follow.

Once you have your will ready to go, it’s best to keep it in a safe place, like in a locked safe at home or even with your attorney or executor.

Set Up Your Trusts

A trust can serve several purposes, but at the most basic level, it serves as a barrier between your assets and taxes or lawsuits.

You might want a trust to avoid probate court, which happens when a will needs to be validated – trusts bypass that process entirely and ensure your assets go straight to your beneficiaries.

A trust can also help you qualify for Medicaid, in that the assets are owned and controlled by a third party rather than yourself.

You can also use a trust to set parameters around assets. For example, you might want to leave a significant amount of money to your grandchild, but only if it will be used for educational purposes.

Living vs. testamentary

There are two main types of trusts: living and testamentary.

A living trust becomes effective as soon as you create it, and it’s usually the most common type. Living trusts are also private – only you and the trustee need to know the terms.

Testamentary trusts exist as a part of a will and only become effective after your death. These are usually used to control exactly how or when a beneficiary receives the money, like if you want your child to reach adulthood or graduate college before they get the payout.

Revocable vs. irrevocable

Beyond choosing a type of trust, you’ll also need to know whether it’s revocable or irrevocable. Don’t let the big word fool you – it’s not that complex.

A revocable trust is one in which you retain ownership, and can enact changes at any time. Once you pass, the trust becomes irrevocable, meaning it can no longer be changed. You can also set your trust as irrevocable from the get-go to avoid tax penalties, but once it’s done it can’t be undone.

How to create a trust

Although there are online options for creating trusts, we recommend you work directly with the professionals for this type of estate planning.

A financial planner can work with you and your estate planning attorney to help ensure your trust is set up according to your wishes. However, the legal questions and ramifications are best left to your attorney. 

When it comes to estate planning, sooner is always better than late (or never). Although many of these documents won’t go into effect until after your passing, it’s important to get them in order now – after all, no one knows just how long they have left.

Grow with Gasber

Need help in your journey to organize your life and finances? Gasber can help – click here to schedule your complimentary “Get Acquainted” meeting today

 Organize Your Contacts 

Making sense of your contacts is hard enough on your own. Chances are you have more than a few people in your phone who you don’t know.

Why are there three Karen H’s? Which one is the right one? Wait, it doesn’t even matter – I don’t know any Karen H!

If you find your own contact list confusing, imagine someone else trying to make sense of it after you pass – in addition to their grieving, they’ll have an organizational nightmare on their hands.

Your loved ones will inevitably need to be able to contact a few important people when you’re gone, and there are several steps you take today to make that process easier.

Note: These steps are based on the guidebook I’ve chosen to help get my life in order this year: 

“In Case You Get Hit by a Bus: How to Organize Your Life Now for When You’re Not Around Later,” by Abby Schneiderman and Adam Seifer (founders of Everplans*) with Gene Newman.

Identify Your Top 5 Contacts

Whether your list of VIP contacts is 500 or 15, the first step is to identify the top five. And not just any five.

While your first instinct might be to list those you talk to most often, that’s actually not a great strategy here – you don’t need your close friends’ and family members’ phone numbers. Rather, you need to identify the phone numbers those people would need when you’re no longer here. Think of them as your emergency contacts for your emergency contacts.

To help you get started, base each contact off of one of these five categories:

1. Medical

Who is your primary physician, or is there a specialist you’ve been seeing regularly for a medical condition? If so, now’s the time to list their information. 

2. Home

Who’s the handyperson you call on when something needs fixed? Is there a person from your church you always stops by to mow your lawn? 

3. Financial

Do you have a financial advisor you’ve been working with? A banker? 

4. Legal

What about an attorney or other legal representative? 

5. Work

Who can you trust from your current (or previous) job to help answer any questions your loved ones may have?

When creating your list, make sure you add the contacts’ first and last names, title or organization, phone number and email address, and any relevant notes your loved ones might need. When in doubt, write it down. 

Other Contacts to Consider Including

We’ve narrowed down your top five contacts because we want to make this as simple as possible for your family members – it won’t be helpful to them if you have a bajillion people listed.

That said, you might need to flesh out your list just a little more. Consider adding these contacts:

• Vehicle maintenance professionals– This could include your car, motorcycle, boat, etc.
• Friends – Your bestie that moved across the country will probably still want to make it to your funeral.
• Coworkers – How can your loved ones access your last paycheck? Who can help clean out your desk?
• Neighbors – Maybe there’s a neighbor down that street that you regularly help with grocery shopping – she’ll probably want a heads up if something happens to you.
• Religious Organizations – Are you the treasurer on the board of your religious organization? Do you run weekly Bible school sessions? Who at your church can help fill in the gaps when you’re gone?
• Other Organizations – Similar to religious organizations, you should include important contact information for any other projects, charities, or businesses you’re involved with.

Make it Easy for Your Family

This entire process is truly a final gift you can leave for your loved ones – it’s a way to make sure they’re not burdened with a massive to-do list and no idea where to start if you were to become incapacitated.

Keep that in mind as you continue organizing your contacts and other aspects of your life. It may seem tedious now, but it could be incredibly helpful to your family down the road.

Grow with Gasber

Need help in your journey to organize your life and finances? Gasber can help – click here to schedule your complimentary “Get Acquainted” meeting today.

 How to Get Your Home in Order 

A lot goes into keeping your household running smoothly. From cleaning to upkeep and maintenance or repairs, these to-dos don’t disappear – even if you do.  

And renters don’t have it any easier. Even if you don’t own your home, there are likely still big pieces to your home life that will require some attention in your absence.

So, as part of my quest to organize my home and life this year, I’m turning to the next chapter in my guidebook:

“In Case You Get Hit by a Bus: How to Organize Your Life Now for When You’re Not Around Later,” by Abby Schneiderman and Adam Seifer (founders of Everplans*) with Gene Newman. 

In the first part of this series, we talked about getting your finances in order so your surviving loved ones aren’t left trying to track everything down.  

This next step is all about how to organize your home (and everything in and around it), so that all your systems continue to function smoothly in the event of an emergency.  

How to Organize Your Pad for When You’re Gone

It’s important to take a look around every part of your home (that creepy area in the basement you’ve been avoiding for years? Yep, that too!). It’s time to grab your pen and paper and carve out an afternoon to get everything in order.

Utilities

Some of the major aspects of your home might be hiding in plain sight, like your electricity, phones and internet.

Take a minute to check these things out – is there a light that always goes out? Where’s the fuse box located, and what do you do to fix it?  

Is your ancient home phone collecting dust in the corner, or is it bundled up with your internet package in a deal that’s too good to pass up? Do you own your own wifi equipment, or are you renting from the internet provider?  

Don’t forget your smoke alarms and carbon monoxide detectors – when were they last replaced, anyway? And how does that HVAC system work?  

Write down all the answers to these questions and any relevant details – while this stuff may seem obvious to you, your loved ones will feel a little less lost sorting it out with your helpful notes.

The Big Stuff

Next up: the big stuff – literally.

Is a piece of furniture in your living room especially valuable? And where did you get that amazing wallpaper in the guest bathroom? What about that hand-painted artwork hanging in your bedroom?  

This information could be invaluable to your loved ones in the case that they want to replace or fix up your digs. Make sure to include:  

• Furniture
• Paint colors and wallpaper brands
• Decor
• Fireplace (including care instructions and how to use)
• Laundry machines
• Kitchen appliances

It’s a good idea to walk through each area of your home and list these big-ticket items based on their location.

The Little Stuff

Now it’s time to get into the nitty gritty details. 

This includes your security system. Whether it’s a high-tech camera run by a top-notch security company, or a neighbor with your spare key and a telescope pointed out their front window, you’ll need to write down a few key pieces of information. 

Likewise, any home automation systems (like Amazon Echos or a digital thermostat) should be included in your list. Write down the passwords, companies, and any other troubleshooting information that could be relevant in the future. 

Are there any small items that are particularly important or sentimental to you? Make sure your family will be able to find and properly care for them.

Outside Your Home

Just because it’s outside of your home doesn’t mean it’s not important. If you have any care instructions for your yard, make sure to include those in your list. You’ll also need to list any storage facilities you use, including their location, monthly price, what’s stored in them and a contact at the company. 

If you have any vehicles (including cars, boats, RVs or motorcycles), list out the makes, models, license plate numbers and any other relevant care information that your loved ones would need to know.

 How to Organize Your Bill Paying and Financial Accounts 

I do not make New Year’s resolutions – if I get a good idea in September, I’ll implement it right then and there. No need to wait until the calendar says I can.

That said, there’s been something weighing on my mind for a while now that’s prompted me to begin a regular, non-New Year’s resolution: My entire family’s financial and estate financial planning is living in my head – and nowhere else.

While my husband takes care of home maintenance and other household tasks, the financial stuff has always been my area of expertise, and that’s always worked well for us. So what’s the issue?

If either of us were to be injured or otherwise incapacitated, the entire system would fall apart!

I may know how to balance a checkbook and file our taxes, but when it comes to operating the generator or starting a fire in our wood-burning stove, I’m pretty much helpless. Likewise, my husband would have a difficult time paying the household bills on time or locating contacts for our insurance policies.

So, this is the year I’m going to organize our lives, and I wanted to bring you along for the journey. While I handle the finances in my marriage, many women leave money matters up to their husbands – and are left struggling to make sense of it all after their husband passes away.

This is a common problem. Women on average have a life expectancy that is nearly five years longer than that of men. If the details of your financial situation are living in your husband’s head, then now is a good time to get them down on paper – no matter how old you are.

And that goes for single women, too. Your loved ones need to know where this information is if they have to help you.

I knew I’d need a little help getting started, so I’m turning to a book with a somewhat morbid title: “In Case You Get Hit by a Bus: How to Organize Your Life Now for When You’re Not Around Later,” by Abby Schneiderman and Adam Seifer (founders of Everplans*) with Gene Newman. I’ve found this book to be invaluable as I consider the steps I need to take to make sure I don’t leave behind a mess when I’m gone.

Get Started with Bill Paying and Financial Accounts

I’ll be starting with what I consider the most important item – bill paying and financial accounts and how to access them. After all, one of the most stressful parts of losing a spouse is making sure bills get paid on time and accounts don’t get lost. it doesn’t do any good to write important information down if others don’t know how to find it or what to do with it in your absence.

So many of my clients are facing the same situation my family is in: one spouse takes care of the bills while the other handles other parts of their lives. I have several clients I meet with without any involvement from their partner at all. In the case of a death or divorce, the surviving spouse is left without a clue, unable to access their money for weeks or even months.

Create a List of All Your Assets

The first step to organizing your assets is to take stock of what you’ve got and where it is. Most people have liquid assets, or funds that are easily accessible. This might include your checking and savings accounts at your local banks or any cash you keep on hand.

Then you have your reserve assets, the ones that would take some time and effort to retrieve (e.g., retirement accounts, real estate, life insurance policies). They’re still a part of your net worth, but you’re probably not going to be spending that money anytime soon.

Create a list of everything you own – liquid, reserve and everything in between. You can do this digitally, like in an Excel spreadsheet. If you’re more comfortable with a pen and paper, grab a legal pad.

You don’t need to include all the sensitive details like account numbers and passwords – yet. Just begin by listing the amount and where it’s kept. Remember, the goal is to make sure your family knows where to look when you’re not there to point them in the right direction.

Information to consider including in your list:

• The money amount
• Where the money is located
• A personal contact (that works at the relevant institution, like your regular banker)
• Where you’ve stored any relevant paperwork
  • This could be online, in a safe, or with another person

Don’t Forget the Paperwork

Speaking of important paperwork, you probably also have some assets that aren’t in dollar form, but also have some value. This could include the deed to your home or titles to any vehicles you own.

When creating your list of assets, make sure to include these items:

• The deed to your home
• The title to your vehicle(s)
• Court orders
• Contracts
• Certificates of authenticity
• Certificates of ownership for any valuable family heirlooms or other big-ticket items

It’s okay if you don’t know the exact value of these items, because they tend to fluctuate over time rather than maintaining a set price. The important thing is to list where your loved ones can find all the important documentation attached to each of the items.

Consider the Benefits

You may also qualify for revenue streams that your loved ones could benefit from in the event of your passing, like a pension, Social Security, disability insurance, unemployment benefits, longevity insurance or child support.

If you’re receiving or plan on collecting money from one or more of these benefits programs, you’ll want to provide some relevant details.

Be sure to include:

• Details or relevant paperwork
• How and where you get paid
• A contact familiar with your account
• Any online details they may need

If you are a veteran or active military member, you may also be due a military burial upon your passing. To help your loved ones cover burial costs and collect any other survivor benefits, make sure you include discharge papers or any other relevant military paperwork in your assets list.

Join Together with Joint Bank Accounts

After you’ve got your list of assets put together, the next step is to ensure you and your spouse are both listed on your bank accounts.

When only one of you is listed as an account holder, you risk having the account frozen upon your death, which could leave your spouse unable to access any of that money and create unnecessary complications with bill-paying after you’re gone.

Safety First

You may have heard that safe deposit boxes are a secure spot for all your important stuff. If your house burns down, you’ve still got your safe deposit box, right?

Maybe.

The reality is that safe deposit boxes aren’t protected by any federal laws – if your items are stolen or misplaced by the bank, you have no recourse for compensation.

I’m not saying you shouldn’t use a safe deposit box – they can be a great spot to keep your heirlooms, insurance policies or even things you want your family to inherit after you’re gone. However, they may not be the right place to store things you think you’ll need access to quickly in case of an emergency, like an Advanced Directive or Power of Attorney.

Most importantly, you’ll want to grant a close loved one or other trusted confidant access to your safe deposit box. Otherwise, they’ll need a court order to gain access after your passing, which can be a lengthy and cost-heavy process. Your bank should be able to assist you in naming a designated trustee or authorized user.

Grow with Gasber

Need some guidance in your financial journey? Gasber Financial Advisors, Inc. is here to help. With nearly three decades of experience in financial planning, our firm has the knowledge and expertise to set your family up for long-term success.

*Everplans is an easy-to-access, secure digital archive where you can store everything described above throughout your life. At Gasber Financial we believe so strongly in organizing that we provide all clients with access to their own Everplan account. Find out more at www.everplans.com.

Gasber Financial is here to help you make confident decisions.

 Please call or "connect" with us at the top of the page for complimentary consultation or with any questions you may have.