Estate Planning Awareness Week

Did you know National Estate Planning Awareness Week is October 17-23, 2011?  I’m guessing you probably didn’t and you probably don’t know why you should care.  According to the National Association of Estate Planners and Councils, more than 120 million Americans do not have up-to-date estate plans to protect their families in the event of sickness, accidents, or untimely death.  The importance of this cannot be overstated and now is the perfect time to reassess your own personal situation. 

You might be thinking “I have a will so I am fine”, but there is a lot more to estate planning than having a will!  And even though you have a will, is it current?  The tax laws have changed significantly in recent years and some of the provisions in your will might no longer make sense and work the way you originally planned.  Also if you’ve had any major life changes such as marriage or kids then your estate planning documents need to be updated.

Retirement planning is also a significant part of estate planning.  A Roper poll commissioned by the AICPA found that two-thirds of Americans over age 65 believe they lack the knowledge necessary to adequately plan for retirement.  It’s important to understand what your needs will be in retirement and to come up with a plan for reaching your retirement goals. 

Twenty-six percent of Americans age 65-74 have a chronic illness that has had a significant impact on their lives.  Does your plan protect you?    Lyle recently discussed long-term care insurance in this article.  This is one way to plan for aging and disability but of course there are other things you can do to protect yourselves and your families.

When was the last time you had a comprehensive review of all your property, casualty and liability coverage?  As your life changes and your income and asset base grow through the years, you need to adjust your coverage to be sure that you are properly protecting your assets. 

Have you considered any estate planning strategies to take advantage of the current low interest rates to transfer wealth to future generations?  Loans to family members, installment sales, and certain types of trusts like grantor retained annuity trusts and charitable lead trusts all take advantage of the current low rates.

Estate planning can take many forms but it is critical for everyone to address.  So next week if you hear someone in the news mention Estate Planning Awareness Week, use it as an opportunity to think about your own situation and discuss it with your family.  Then let us know how we can help update and improve your plans.

You might also want to check out a webinar on Tuesday, Oct 18 at 2:30pm brought to you by the AICPA on this topic.  It’s called “Protecting you and Your Loved Ones: Practical and Vital Estate Planning Information for Consumers in Plain English” and you can access it here.  The webinar is free to attend.

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