Estate Planning Review — Margaret Chen

Mrs. Chen, thank you for coming in today. I wanted to review the changes to your estate plan that we discussed last time.

Thank you, David. Yes, I was hoping we could discuss updating the beneficiary on my IRA. My daughter Lisa has been going through a difficult divorce and I want to make sure the grandkids are protected.

Absolutely. That's exactly what we're here for. I also see from my notes that you wanted to add your granddaughter Lily as a contingent beneficiary since she's turning 18 next month.

That's right. Lily is turning 18 in April and I want to make sure she's protected if anything happens to me before the trust fully distributes.

Good thinking. We can add a contingent beneficiary to the IRA and also look at whether the QTIP trust needs an amendment to account for the timing of her reaching adulthood.

Yes, because right now the trust says she gets her share at 25, but I'm worried that's too old. What if something happens to me before then?

That's a valid concern. We could either lower the age to 21 or set up a staggered distribution — a third at 21, a third at 25, and the remainder at 30. That way she has access to some funds for education but the rest is protected.

I like the staggered approach. What about the power of attorney documents? My son says I should have those updated too.

Your son is right. We should update both your financial and medical power of attorney. Who did you have in mind as your agent?

Lisa would be the primary. But given the divorce situation, maybe I should name someone else as backup in case she can't serve.

That's smart. We could name your brother Thomas as successor agent. Also, let's make sure your HIPAA authorization is current so whoever you name can access your medical records.

Good. One more thing — I want to add a charitable giving component. I've been volunteering at St. Mary's Food Bank and I'd like to leave them something in my will.

That's a wonderful idea. We can add a charitable bequest — either a specific dollar amount or a percentage of your estate. We could also set up a donor-advised fund during your lifetime if you want to start giving now.

Let's start with the will. A percentage would be nice — maybe 5% to the food bank and 2% to the animal shelter where I volunteer on weekends.

I can draft that language today. So to summarize: IRA beneficiary update with Lily as contingent, trust amendment for staggered distributions, updated POA documents, and charitable bequests. Did I miss anything?

No, that covers it. Oh wait — the house. I want to make sure the house goes to Lisa and the kids, not to be sold if there's any question.

We can add a specific bequest of the real property. I'll work with the title company to make sure the deed reflects the trust. I'll have drafts for you to review by Friday.