Many people figure that once their estate planning documents are executed the estate planning process has ended. From the client’s perspective, several consultations have been attended and a lot of hours have gone into ordering beneficiary designation forms, real estate documents, and the like (unless the client went to an estate chop shop, in which case almost no time has been spent and the significance of the affair has not been realized). From the old school estate attorney’s perspective, the only financially significant moments of the process are during the drafting/execution phase, and entering Probate upon the client’s death, so follow-up appointments are viewed as a waste of time.
I find this viewpoint to be both unfortunate and potentially hazardous to client and attorney alike: A client’s health and wealth may be adversely affected at any time, leaving a client vulnerable or uninformed as to what to do next. Taxation laws change constantly, meaning that a client may pass on substantially less assets upon their demise. The trusted attorney-client relationship, like all long-distance relationships is eroded by time.
Though I squarely place the blame on lackadaisical attorneys for the perception of “Execution is the End,” a client should have the insight to ask his or her lawyer “So, when will I see you again?”
- Death: Despite the advances of modern science, it is still somewhat difficult for a deceased person to contact another person. If a client has been working with an estate planning attorney who is in on-going contact with the client, the attorney will be keen on contacting family members during their initial engagement to make those family members aware he has knowledge of the now-deceased client’s affair. This also includes when a client’s close family member passes away – wealth and responsibility may be transferred to the client, and they need to know what is required of them.
- Significant Illness: This includes whether the client gets ill, or a child or parent is ill with a progressive illness (Autism, Dementia) or an acute illness (Cancer, invasive surgeries). In the case of progressive illnesses, an attorney may be able to procure certain government benefits (Medicaid, Social Security). Informing an attorney of acute illnesses may allow for last-minute estate planning procedure which will save time and money upon passing (it is much easier and less expensive to deal with estate matters prior to death).
- Birth of Children and Grandchildren:Children and Grandchildren have a profound impact on estate planning – it is the very basis of the field. Additional grandchildren may change gifting strategies. The birth of a child also changes an estate plan based on New York law (if a person dies without a Will and with a spouse and a child the spouse is, by default, entitled to $50,000, then splits the remaining funds with her spouse – the surviving spouse does NOT receive all estate assets free-and-clear).
- Remarriage / Divorce:Divorce is obvious – in New York the ex-spouse receives nothing, but the testamentary plan to children may have changed, as well as a choice of Executor. Remarriage (especially when children are involved) adds an additional dimension to the estate plan (read my former post “One My Second Marriage…With Children from My First”).
- Coming Into (or Out of) Money / Business Transactions: An estate planning attorney is always cognizant of estate tax consequences. More money = more taxes. Informing your attorney may help minimize these taxes. Likewise, substantial gifting may have consequences a client may not be aware of.
- Aging: As people age they inevitably begin to “slow down.” There is no magical age when this takes place, though it is typically around 80-85 years old. At this point a client should consider enlisting the help of their children/agents in the estate planning process, and meet with their attorney at least annually.
- At Least Every 5 Years: I attempt to meet with clients every year if they have any of the above circumstances surrounding their lives. If they do not, I will usually tell them to come back in a few years or if any of the matters above takes place (it almost always does). Life has usually changed enough every five years that at least a review is required (if not redrafting some of their documents).
While some people may believe the extra money spent on follow-up consultations is not well spent, it is my experience that over the long haul the expenses incurred in keeping an estate plan up-to-date lead to substantial long-term returns almost every time.
