My Aging Parents

Three Things with Shane Phillips.

What do adult children find out about their parents’ estate plan that they wish they knew earlier? 

That’s the question I asked Shane Phillips, an after-loss educator and consultant who helps clients navigate the overwhelming amount of legal and financial tasks after a parent’s death. 

Here, in his own words, are three things Shane wants you to know:

1. Don’t assume there’s an estate plan.

You’d be surprised at how often people discover there isn’t. And I’ve seen too many situations where that turns out to be the case.

When there is no estate plan, a court appoints an administrator to distribute your parent’s estate according to their state’s inheritance laws. 

This process is called probate. It takes a lot of time. It’s expensive. And it’s all a matter of public record. 

Probate can drag out for months or years, especially if an unhappy relative contests the will. And if your parent owned property in different states, now you’re looking at additional legal fees to go through a separate probate process in each state.

2. Watch for unexpected gaps.

Just because your parent has an estate plan doesn’t mean it still accurately reflects their circumstances or wishes. Or that every part was implemented properly.

A lot can change after an estate plan is in place. People get married and have kids. People get divorced. The person who agreed to act as your parent’s representative may no longer be willing or able to serve. Inheritance laws can also change.

Unexpected estate planning gaps only compound stress. They can also create potential — and costly — legal nightmares. 

For example, assets such as bank accounts and IRAs that are not titled properly can be subject to probate. And no one wants to discover that Dad never got around to updating the life insurance trust that still names an ex-spouse as trustee.

3. Talk with your parents while you still can.

It’s easy to avoid talking about end-of-life planning, or to assume your parents have already taken care of everything.

Don’t make that mistake. Have an open conversation with your parents while you still can. 

At the very least, ask if there’s an estate plan, where it is, and the last time it was updated by an estate planning attorney. 

Navigating the bureaucracy of death is challenging even when your parent’s estate is in order. And when you’re grieving, the last thing you want to deal with are complications that could have been avoided.

For More:

• ​First Steps Help — Shane offers resources to help handle financial matters after the death of a loved one, including an online course and concierge services.

Thanks for caring,