The MLO Minute
Market Volatility and Reviewing Your Estate Plan
February 12th, 2018: After we complete an estate plan for a client, we remind them that certain important changes in their lives can indicate a critical need to review their wills, trusts, and powers of attorney. These circumstances may include death, disability, marriage, divorce, or changing economic circumstances.
In this vein, significant market volatility can be a situation which, for many couples or individuals, requires a careful review of not only their financial plan for the future, but also how their wills, trusts, and powers of attorney fit into that equation.
For example, if existing wills make a bequest of a particular stock with an intent that a beneficiary receive a specific amount of money or percentage of the estate, a rise or fall in the stock market can significantly affect that plan. Moreover, if a plan of gifting is in place to the next generation, and a rapidly rising or falling stock market affects the amounts and types of gifts to another generation, it is very possible that wills or trusts would need adjustment to take these circumstances into account.
We frequently work very closely with financial consultants, accountants, and stockbrokers to assist families in determining whether their rising or falling assets are in line with their future needs and estate planning goals. We have found some of our most satisfying professional work to involve collaboration with financial professionals in addressing the current and future needs of our respective clients.