Life is full of contingencies. While some outcomes are relatively certain, other events are more difficult to predict. This uncertainty can create estate planning challenges. Because life changes quickly and sometimes unexpectedly, your estate plan needs to be flexible.
You can make changes to your estate plan when you are still alive, but when you pass away, your plan is effectively—but not entirely—set in stone. Incorporating milestones into your estate plan is one way to hedge against the unpredictable future. By creating incentives for particular events, you can continue to exercise your values and provide for your loved ones beyond your lifetime.
If-then statements allow outcomes to be determined with conditions. They are found in deductive logic, computer programming, and legal documents, including estate planning documents.
The premise of an if-then statement is simple: if a given criteria is met, then a certain action follows. For example, you might write in your will that, “If my spouse predeceases me, then I leave my house to my oldest son,” or, “If both my spouse and I pass away, then [Person X] will be nominated as guardian of our children.”
Such clauses can help you retain some power over outcomes that would otherwise be out of your control. They can also help you to plan for future contingencies in a way that is not possible with simple declarative statements (e.g., “I leave my house to my spouse.”).
If-then clauses can be combined to account for numerous future possibilities. So, in addition to “If my spouse predeceases me, then I leave my house to my oldest son,” you could specify that “If my son is not employed, then I put my home in a trust to be managed by [Trustee Y].”
Conditional provisions that offer enhanced flexibility to your estate plan can take many forms. These provisions do not always have to be if-then statements. They can also include gifts or distributions that are triggered at specific times or milestones.
The following are some events that you might consider incorporating into your estate plan:
Keep in mind that these estate planning milestones can be combined and modified as you wish. For example, you might give wedding money to a child, but keep the rest of their inheritance in a trust so that if your child gets divorced, the money and property you pass on will not end up in the hands of their ex-spouse.
Another option is to set up your estate plan to direct more money to someone if the value of a certain account or property rises. Or, if the account overperforms, the increase in value could be donated to a charity of your choice. You could also use an if-then statement to provide that a beneficiary receives an extra gift only if they meet a certain milestone. The options are nearly endless.
Populating your estate documents with numerous if-then clauses and milestones can make things more complicated. But it might give you greater peace of mind knowing that numerous potentialities have been anticipated.
It is crucial to make sure that everything is in writing. Your estate planning attorney can create a diagram or flowchart that helps you keep track of all the moving pieces. Having a chart—rather than a jargon-filled legal document—can make it easier to review and update your estate plan if there is a major life event, such as a death, birth, marriage, or illness).
Whatever you decide to do, do not put it off. Act now to create a plan that provides for your loved ones while honoring your wishes. Schedule an appointment with our estate planning attorneys to get started.
Businesses are governed by laws and regulations that affect nearly every aspect of their operation. From formation, hiring, and firing, to drafting contracts, resolving disputes, and dissolving or selling the company, there are numerous legal matters that arise during the lifetime of a business.
As a small business owner, you are adept at handling challenges. But when it comes to parsing the fine print of the law, you may feel that you are in over your head. You cannot do everything on your own. Every business relies on other businesses to accomplish its goals. Accordingly, there is arguably no partnership more important to your long-term success than the one you have with your business lawyer.
Finding the right lawyer for your business can seem intimidating if you have never done it before. When preparing to meet with candidates, develop a plan that will allow you to identify an attorney who is a good fit to assist you with your company’s industry, goals, concerns, and culture.
Even the most well-oiled business machine needs the counsel of a knowledgeable and skilled lawyer. While not every company requires in-house counsel, having a dedicated business attorney on standby, ready to assist you whenever needed, can help you avoid costly legal missteps that threaten the success—and even the survival—of your business.
A business lawyer can generally provide the following types of services:
Ask questions with purpose and find out as much information as you can. You may want to include other key stakeholders in the interview process, such as co-owners, decision makers within the company (such as executives and managers), and advisors. Although they do not all need to be present at the interview, they should at least be consulted because they may offer perspectives that you have not considered.
The following are some relevant topics to discuss with the business lawyer during the interview:
Are you ready to talk to a member of our firm about the ways we can contribute to your business’s success? Contact us to set up a meeting with one of our experienced business lawyers.