Your estate plan might have holes in it
The gaps that can unravel even the best-laid plans
You did the hard part.
You hired an attorney. You signed the documents. You have a will, maybe a trust.
You feel organized and prepared.
And you probably are — mostly.
But here’s what a lot of people don’t realize: having an estate plan isn’t the same as having a complete one.
Life keeps moving after you sign those documents.
And the gaps that open up over time can create exactly the kind of chaos you were trying to prevent.
Think about the scenarios you’ve probably heard of.
A child who struggles with money receives an inheritance all at once — outright, with no protection — and it’s gone within a year.
A son or daughter’s marriage falls apart, and suddenly assets you intended for your grandchildren are at risk in a divorce settlement.
A car accident that exceeds your liability coverage wipes out a portion of the estate.
An ex-spouse who’s still listed as a beneficiary — because no one updated the paperwork — inherits assets you never intended them to have.
These aren’t rare.
They happen to families who thought they had everything in order.
The problem isn’t that people don’t plan. The problem is that plans go stale.
Think of your estate plan like a smoke detector.
Having one installed gives you a sense of security — and it really is better than nothing.
But if the battery is dead, or it’s the wrong type for the fire that starts, it won’t do what you need it to do when you need it most.
Your estate plan works the same way.
It needs to keep up with your life.
Children and grandchildren are born.
Marriages happen — and sometimes end.
People move, start businesses, inherit assets, change their minds about who they trust.
Each of those changes can affect whether your plan does what you intended.
Even well-drafted documents from just a few years ago may not reflect your current wishes — or the current reality of your family and relationships.
Your estate plan isn’t a “set it and forget it” document.
Neither is your financial plan.
And ideally, the two are working together.
What to do next:
Review your documents. Read your will, trust, powers of attorney, and healthcare directives. Confirm they still say (and do) what you want.
Ask about potential gaps. Talk to your estate planning attorney — or a financial advisor familiar with estate planning — about vulnerabilities you may not have considered. Spendthrift provisions for heirs who struggle with money. Divorce protection for assets you leave to children. Creditor exposure. Whether your trust has actually been funded (a trust that hasn’t been funded is essentially worthless).
Make sure your financial plan and estate plan are coordinated. Beneficiary designations, account titling, insurance coverage, and trust funding all need to be aligned. A mismatch in any one of these can override even the most carefully written will or trust.
Set a review reminder. Every 3 years at minimum — sooner if something significant changes in your life or your family’s.
Ask “what if.” What if my child gets divorced? What if I become incapacitated? What if a beneficiary dies before I do? The answers will tell you a lot about where your plan may need work.
If you don’t have an estate plan yet, let this be the nudge: get one.
It doesn’t need to be complicated, but it needs to be there.
If you have one, take it off the shelf.
Not just to confirm where your money and property goes — but to think honestly about the scenarios that could derail it.
And if you’d like help thinking through how prepared your estate plan really is, or whether your financial plan and estate plan are working together the way they should, I’m happy to talk.
That’s exactly the kind of conversation worth having before life makes the decision for you.
Links and things
Here are a couple of free webinars from my health insurance planning partner this month:
Turning 65: What To Know About Medicare on May 12th
By the end of the webinar, you’ll have an understanding of:
- Initial Medicare Enrollment timelines
- The difference between Original Medicare and Medicare Advantage
- How Medicare drug plans work
- How personal preference, risk tolerance, and other factors impact available plans and the cost of coverage
Early Retirement: Healthcare Coverage 101 for Pre-65 Retirees on May 21st
By the end of this webinar, you will:
- Understand the basics of ACA health plans and other health insurance options available to pre-65 retirees.
- Know important action items, such as specific enrollment timeframes.
- Understand how personal preference, risk tolerance, and other factors impact available plans and the cost of coverage.
- Learn the advantages and disadvantages of Health Savings Accounts.
- Learn how working with Move Health makes it easy for you and your financial advisor to determine your optimal healthcare coverage.
Another approach to retirement planning:
Thank you for reading!
If you have a question or would like my advice, simply reply to this email with your questions and I’ll be happy to respond with my thoughts…
Until next Wednesday,
Russ
Estate plans are like smoke detectors with dead batteries far more often than people realize. What I see in my work — sitting across from women in the middle of a divorce or a spouse’s death — is that the paperwork said the right things once. Life just kept moving. The beneficiary designation that was never updated. The trust that was never funded. The accounts titled in a name that no longer exists. The plan was there. The coordination was not. This is exactly the conversation worth having before the call comes.