Two years ago, a victory for the elderly occurred when advocates succeeded in having more rights and protections put into place for the surviving spouse of a senior with a reverse mortgage.

Protections put into place two years ago, could now be at risk as a direct result of a very subtle language change from the Trump administration’s proposed budget request for the Department of Housing and Urban Development (HUD). The most vulnerable person—a surviving spouse who did not sign the mortgage documents—could be put in a terrible position and face foreclosure on the family home.

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It’s one of the topics people really steer clear of: their own death, and what they really want to happen after they die to their remains. It may be an awkward conversation, but it is truly worthwhile.

We hear occasionally about the individual who decides to make all of the arrangements for their own funeral without even talking to their adult children about it. They chose the funeral home, select a casket, and sometimes even write their own memorial service. It makes a difficult time a little more bearable for the surviving family members, although it’s not always easy to do.

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It’s the thing movies are made of: a distant relative who you met only once has made you the heir to his or her entire estate. You’ve got money and other assets coming your way—minus the emotional turmoil of losing a loved one. Still, you need to take a closer look, warns The Street in its article, “Why You Might Want to Refuse That Inheritance.” You may realize that sometimes it’s best that this scenario remains a fantasy.

There are several reasons for an heir to disclaim or say “no” to an inheritance. In many cases, it’s to redirect the money within the family to a more tax-efficient recipient. For instance, a gift might bump your own estate over the federal estate tax limit of $5.49 million for an individual or $10.98 million for a couple. When you reach this threshold, estates are hit with a 40% tax. If a named beneficiary would expect to incur estate taxes on his or her death, a smart move would be to save on taxes and disclaim an inheritance to a child with a smaller estate.

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If you haven’t looked at the paperwork for your life insurance policies, bank accounts, retirement accounts, investment accounts and any other asset that names a beneficiary, right now would be a good time to take a look—especially if you haven’t done so in years. The number of horror stories of assets going to untended people would surprise you. It’s an easy fix, but is all too often forgotten.

MarketWatch’s recent article, “Make this estate planning move right now: Check your beneficiary designations,” explains how the Fifth Circuit Court of Appeals reversed a trial court ruling by finding that a pension plan administrator didn’t abuse her discretion in determining that a deceased plan participant’s stepsons weren’t considered his “children” under the terms of the plan. As a result, the deceased participant’s siblings, not his stepsons, were entitled to inherit the plan benefits in Herring v. Campbell (5th Circuit 2012).

You may love your stepchildren as if they were your own and wish to take care of them. However, if their names don’t appear on the beneficiary form of a particular asset, they will not receive anything. Your estate planning documents will not override a beneficiary designation. If that wasn’t enough of a reason to do a beneficiary check-up, here’s another: by designating beneficiaries (other than an estate), the assets do not have to go through probate.

Aligning your beneficiary designations with your estate plan is a simple way to take care of your family. Speak with your estate planning attorney and financial professional to ensure you’re aligning these accounts correctly. For instance, if in your estate plan you created a trust for the benefit of your children, you’ll want to ensure the trust is named as a beneficiary. There’s another issue to watch, as well. You’ll want to ensure you receive verification from the financial institution that the asset has been aligned correctly in their records. It’s always better to address any errors now rather than in the middle of a crisis.

There could also be other planning opportunities as you age, as well. That’s why it’s important to work with your estate planning attorney on an ongoing basis to regularly review changes in the law, your assets and family situation to see if any changes should be made to your plan. If someone you named as guardian or trustee passes away, your estate plan may need to be updated. Have a new grandchild? Your estate planning attorney and financial professional might recommend considering inherited IRA planning. While that will mean updating the beneficiaries on your designation form, it can also be an excellent generational wealth planning tool.

There are certainly many things to consider when creating your estate plan. However, while beneficiary designation forms can make things simpler when you pass away, you have to ensure it’s all been done correctly. Work with experienced estate planning and financial professionals to align your assets, verify the correct alignment, and track any changes in the law, your assets or your family situation over time.

For more information on the importance of aligning, verifying and tracking assets, explore our website and contact us to schedule your consultation today!

Reference: MarketWatch (June 30, 2017) “Make this estate planning move right now: Check your beneficiary designations”

There are, admittedly, challenges when people decide to get married after fifty. There are also many myths, as reported by Forbes in “6 Money Myths About Marrying After 50.” If you or your intended has children from a prior marriage, there are added complications that need to be addressed.

Myth #1: Pre-nups are just for the rich or famous. If you’ve been married before and have children from a previous relationship, a prenuptial agreement is important to ensure your assets will pass to your children from the prior marriage. What about a first-time marriage? There still might be a need for a pre-nup, especially if you own significant assets. Don’t think of a pre-nup as preparing for divorce, but rather more like creating your estate plan. If you don’t have your affairs in order, the state will decide for you—just like dying without an estate plan.

After age 50, the focus of a pre-nup should be on protecting your children and grandchildren. For instance, some states—like Massachusetts—allow a surviving spouse to claim his or her “elective share,” instead of what’s detailed in the decedent’s estate plan. A pre-nup allows your spouse to waive the elective share, meaning odds are your estate plan won’t be challenged by your surviving spouse.

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