Implementation
The final step of the estate planning process is to ensure the plan’s implementation. Sometimes this is as simple as drafting a will and discussing the plan with the nominated executor. Other plans require detailed coordination of many facets: creating and funding a trust, making lifetime gifts, re-registering deeds, and updating beneficiary designation forms.
Cautionary Example: The Unfunded Trust
Unfortunately, he never funded the trust. His residence, rental real estate, and investment portfolio were held jointly with Janet. She was also the beneficiary of his life insurance policy and pension benefits. As a result, Janet became the unintended beneficiary of the entire estate — the children received nothing. Assets intended to pass privately and quickly through the trust passed slowly through the probate system. When Janet attempted to distribute property to the children, it caused adverse tax consequences and disrupted her own estate plan.
This could have been avoided by simply re-registering deeds and signing a few beneficiary designation forms. An estate plan is not complete until it is fully implemented. As the old saying goes: “the devil is in the details.”
Key Implementation Steps
- Fund the trust — re-title assets into the trust name; an unfunded trust is an empty legal shell
- Update beneficiary designations — coordinate life insurance, retirement plans, and annuity contracts with the overall estate plan
- Update property titles — confirm ownership aligns with the plan (individual, WROS, trust, or other)
- Communicate with fiduciaries — confirm nominated executors, trustees, and guardians are willing, able, and aware of the plan’s general intent
- Coordinate at life events — when changing employers, update beneficiary designation forms immediately to coordinate with the overall estate plan
When to Review and Update the Plan
Estate plans are not permanent. Situations change — sometimes imperceptibly (rising property values) and sometimes dramatically (birth of a child, death of a spouse). The plan must keep pace with changing circumstances. Major events require a formal review:
- Marriage or divorce
- Physical incapacitation
- Incapacitation or death of a spouse
- Birth, adoption, or death of a child
- Death or incapacitation of a nominated executor, guardian, or trustee
- Creation or dissolution of a business
- Retirement or major change in employment
- Significant changes in investment holdings or values
- Changes in domicile (moving to a different state)
- Significant changes in the tax code
Ideally, the plan has enough flexibility to handle everyday twists and turns. Contingency provisions — alternate executors, successor trustees, contingent beneficiaries, powers of appointment, and durable powers of attorney — can address many of these situations without requiring a complete overhaul. For major life events, however, a formal review with the estate planning team is essential.