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.
Clarifying Your Wishes with If-Then Statements. If-then statements allow outcomes to be determined with conditions. 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, “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.”).
Common Beneficiary Milestones Used in Estate Plans. 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:
- A child turning eighteen or twenty-one. A child celebrating a milestone birthday could trigger an action in your estate plan.
- Completing a degree or certificate. A gift might be conditioned upon the beneficiary graduating from college or earning a professional certificate.
- Purchasing a first home. You could give some or all of a bequest to a beneficiary when they purchase their first home.
- Employment. You might hesitate to leave money to a beneficiary who is bad with money or has a poor employment record. As a compromise, you can base their inheritance on being fully employed for at least a year.
- Sobriety. Like an employment clause in your estate plan, there can be a clause that releases an inheritance only if the beneficiary has stayed sober for a certain length of time or has successfully completed a rehab program.
- Having children. Having a child is expensive. To help with the expenses you can include an estate planning provision that kicks in extra money to a family member when they give birth, adopt, or require assistance with reproductive technology.
Now Is the Time to Plan for the Future. Populating your estate documents with numerous if-then clauses and milestones can make things more complicated. It is crucial to make sure that everything is in writing. 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.