What exactly happens after you receive your estate planning binder?
Estate planning is a process, not just a product. While receiving your binder with signed documents is important, it’s only the beginning. The binder contains your estate plan – a series of documents that need proper implementation. Your estate planning firm should provide a comprehensive to-do list outlining necessary next steps.
How do you properly fund your trust?
Trust funding involves two main aspects: making the trust the owner or beneficiary of your assets and handling logistics. For real estate, your attorney typically handles recording the deed with the local county recorder to formally place the house in the trust – a critical step for avoiding probate. Personal property like cars, jewelry, and artwork can be handled through a signed statement placing these items in the trust. For sentimental items, you can complete a form specifying who receives which personal items to prevent future disputes.
What needs to be done with financial accounts?
Financial accounts require making the trust either the owner or beneficiary at the institutional level. This involves paperwork with banks, life insurance companies, 401(k) providers, and investment firms. While the paperwork isn’t complicated, it must be completed within the first 30-60 days after receiving your binder for optimal effectiveness.
What are common mistakes families make after creating their estate plan?
The biggest mistake is failing to fund the trust properly. This can lead to several issues: if minor children are named as beneficiaries, assets may still go through probate; adult children might receive assets before they’re ready (like at age 18 instead of 25); and assets might lose protection from creditors or divorce proceedings. Another critical mistake is not informing trustees about asset locations, especially with digital assets like cryptocurrency.
How should you handle business succession planning?
Business owners need clear succession instructions. This includes informing spouses or backup choices about business operations, identifying key contacts, and establishing procedures for business continuation or closure. For professional services like law firms, special considerations apply since they may not be able to operate without the principal.
What ongoing support should you expect from your estate planning firm?
A quality estate planning firm should provide timely support with responses within one business day. They should have separate teams handling new and existing clients to ensure consistent service. Regular check-ins at 30-60 days post-completion, six months later, and every three years help maintain plan effectiveness. The firm should grow with their client base to maintain service quality.
Why is keeping your plan updated important?
Maintaining an updated plan is crucial for avoiding probate and ensuring assets go to intended beneficiaries. While initial trust funding is important, new assets must be properly titled as they’re acquired. Without updates, assets might go through probate – a process that typically takes 1-2 years in Orange County, even for uncontested cases.
