Infamous Conservatorship

It's not every day that you hear or read about conservatorships in the news.

However, most of us have heard or read about Britney Spears, who unfortunately has been having some serious mental problems as of late. A little over a year ago, after a second psychotic break, a judge set up a conservatorship for Ms. Spears and named her father, Jamie Spears (pictured at left) as the conservator. The full story can be found on the Los Angeles Time's website by clicking here.

If you read the article, you'll note how complicated things can get for the conservator. Seems as though some of those involved with Ms. Spear's case do not feelher father is doing a good enough job as the conservator.

Some people have made careers by becomming professional conservators. These experienced people will handle the potential problems associated with being a conservator. In the Golden State, an organization called Professional Fiduciary Association of California lists hundreds of people throughout the state who are professional conservators.

Name that Beneficiary!

Prevent potential headaches to your heirs. Make sure they are listed as intended beneficiaries on all of your financial accounts which make up your estate plan.

We'll keep it simple with the basics:

• Your will does not always hold water. If you have out-of-date beneficiaries on your financial accounts, such as IRAs, 401Ks and insurance policies, you may have a major problem. Your will does not control these assets, even if you wrote the particular beneficiary out. Bottom line: review your beneficiaries periodically, particularly after a major life event (most commonly death or divorce).
• Name a Runner-Up. In most documents, you may name two beneficiaries, so be sure to fill in the second space. If the first beneficiary should die before you, the asset will go through probate, which is expensive and time-consuming.
• Retirement Plans are Tricky. Enough said. Make sure your estate planning attorney helps you with this one.
  
• Do not Name a Minor as Beneficiary. Should you die before the minor reaches adulthood, the property will likely be probated. Courts have strict rules about how benefits are distributed to minors and will supervise--which means it is costly. A trust may be a better option.
  
• Feel Free to Change Beneficiaries. A simple form is typically all that is required.

Adapted from "Five Things to Know About Naming Beneficiaries" by Ismat Mangla of Money Magazine.

Updating Your Estate Plan

If you have an estate plan, it is good idea to get it reviewed every 3-5 years. Some of the documents of your estate plan may expire over time. Likewise, there may be changes to your family such as a divorce or remarriage, a new child, or a new charitable organization you would like to contribute to at your death. These changes in your family or wealth can dramatically alter how your estate plan should be structured.

Also, the laws are changing all the time. A great article in Money Magazine, titled Keeping Wealth in the Family discusses this topic in more detail.

Many attorneys will look over an estate plan free of charge, then set up a meeting to discuss with you what should be changed and give you a price for completing this task. This would also be a good time to also consider adding additional documents which may not have been part of your original estate plan. These documents could include a health care directive, durable power of attorney, funeral arrangements, etc.