Financial Anxiety

“Be anxious for nothing,…” are familiar words from the New Testament book of Philippians. Although many of us believe that we should indeed live that way, we are asking ourselves how this is possible. How can we help being anxious when everyone’s speech is peppered with words like “financial crisis, economy, bail-out, default,  stimulus, recession,  nationalization, socialism, etc. ?  Wherever we go, people are talking about the economy. In our homes, at work, at church, at the dentist’s office, at the grocery store, it is THE topic of conversation.  Almost everybody is seriously worried. The specific term for this feeling of worry is anxiety. My copy of Chaplin’s Dictionary of Psychology defines anxiety as the “…feeling of mingled dread and apprehension about the future without specific cause for the fear.” Fear is different from anxiety. Fear is something vivid from which to escape. Anxiety is the perception of danger looming but with uncertainty about the nature or direction of the risk.

Anxiety is about ambiguity and uncertainty. We are all wondering: How will this financial mess affect me and my family? Will I lose my job? Will the value of my home and investments recover? Can I afford to retire? How will I pay for my children’s education? Will my taxes go up? What makes us anxious is the great unknown.

Certainly, I am not attempting to minimize the seriousness of our nation’s economic problems, nor am I advocating a “head in the sand” type mentality. What I do suggest is that we refuse to be controlled by financial anxiety. Let’s look at what we can do to deal with these issues. First of all, stop looking for a catastrophe. Many people have a tendency to assume the worse and make bad things catastrophic.   Don’t fall victim to “the sky is falling” type of news. Don’t confuse general economic conditions with your personal situation. Get a clear picture of your personal finances. Assess your financial strengths and weaknesses. Do recognize that television news is repetitive. When we are continually surrounded by negative thinking, our ability to reason and solve problems becomes diminished. This fuels anxiety. Do remember that “bad news sells newspapers, “ and that television commentators, radio talk show hosts, and the print media become popular and thus successful by being sensational and confrontational. Do avoid negative, alarmist people, for they drain you of positive energy. Also, avoid the “all or none” mentality when considering financial matters. Don’t make a bad situation worse. Recognize that a downturn in the economy, even a serious downturn, is not the same as a total collapse.  A recession is not the same as a depression.

Second, approach your personal financial situation logically. When you encounter financial information that makes you feel anxious, ask yourself these questions:
What does this information represent to ME: (1.) a minor inconvenience, (2.) a major inconvenience, or (3.) a genuine catastrophe? In reviewing these things, keep in mind that we often make an error in thinking that just because something is possible, it is also probable.  A wise man once said: “My life has been a series of terrible misfortunes, most of which never happened!”

Third, be proactive! Prepare an action plan for your finances. Remember when we were in school and had fire drills? Consider your action plan as a “financial fire-drill.”  Begin by defining the problem. Next, figure out the desired outcome. Finally, develop action steps to deal with the problem and move toward the desired outcome. At this point, you may wish to get the assistance of an experienced financial advisor. Following the impersonal, generic advice of a radio or television talk show host or reading  popular financial self-help books  are no substitute for sitting down with a concerned counselor or advisor who takes the time to get to know you and your family.

Fourth, if you feel yourself becoming overwhelmed with financial anxiety, practice what I call “worry management.”  Ask yourself these three questions: (1.) What can I control today?  If you can control it, then do it. For example, you decide you can immediately reduce your spending by limiting dining out, stopping recreational shopping, and paying cash instead of using credit cards. (2.) What can I control later on?  For example, you prepare a financial contingency plan to deal with significant financial emergencies. You establish a home equity credit line, determine the requirement for emergency borrowing from your 401(k) plan at work, and get the coin collection you inherited appraised. (3.) What can I never control?  Do not; repeat: DO NOT worry about those things! For example, the great majority of us have absolutely no control about what happens in Washington. Realistically, all we can do is express our opinions to our senators and representatives in Congress, and vote. Instead of worrying about things over which you have no control, spend your time and energy on things that you can influence.

Fifth and finally, focus on positive things. Make detailed lists of the good things you can identify about your financial situation. Realize that having less is not the same as having nothing. This reminds me of a proverb that my mother repeated over and over when I was small:  “I wept because I had no shoes, until I saw a man who had no feet.”

Recognize that just because some people are having trouble does not mean that you will have trouble. Consider keeping a  Gratitude Journal in which you daily write of the positive material and non-material things for which you can give thanks. Count your blessings; they are so much greater than most of us realize!

Financial Scams

Question: In your career as a financial advisor, what is the worst financial scam you have seen?

Answer:    In my 30 plus years as a financial advisor and CPA, there have been many instances when I have had the satisfaction of helping clients avoid the clutches of thieves with cleverly devised plans to separate them from their money.  Unfortunately, by the time a reputable financial advisor is consulted,  it is often too late and the money has been stolen, almost never to be recovered.

Financial scams go by many names and take many forms. We hear of confidence games, Ponzi schemes, pyramid schemes, bogus investments, sweepstakes schemes, identity theft, etc.  Financial scams surely go back to the dawn of time as there have always been unscrupulous people willing to prey on the needy, the naive,  and the unsuspecting. The Bible contains several examples of financial scams, such as in the parable of the dishonest steward in Luke chapter 16.

There are so many varieties of financial scams that discussing them all would require a thick book instead of this blog, so I will comment on one of the most clever and remarkable scams I have uncovered.

Let us assume that you are a respected business owner who wants to expand  your business but needs additional capital to really make it big.  This is well known, and a friend or business acquaintance, mentions that he or she knows someone who knows someone that specializes in “unconventional financing.” Eventually you are put in contact with the “financing specialist” and a meeting is arranged. The person you meet beams with confidence, has a firm handshake and looks you right in the eye. You are impressed with his  experience and resume. The specialist carefully listens to your needs and proposes several different courses of action to help you. You come to trust this person, who seems honest and sincere and often peppers his speech with religious references and Bible verses, and constantly talks about family. Almost reluctantly, the specialist tells you of  a special program he knows about that would be wonderful, IF you can be qualify and IF you are accepted. He promises to look into it for you.

The specialist comes back to you several days or weeks later with a thick folder of legal looking documents. He tells you that there is a “secret program for trading United States Treasury securities.”  You are told that the  federal government only allows a handful of people to participate each year as the rate of return is so high.  You make your money by investing $200,000 in the program. Your investment “rolls over” several times a day, so that you may make as much as $20 MILLION in one year, depending upon the interplay of the interest rate set by the Federal Reserve and foreign currency exchange rates.  No one is allowed to participate for more that one year. You are shown impressive looking charts and  graphs. The specialist tells you that due to government confidentiality requirements, he cannot give you a copy of the material, but you are free to examine it in his presence. He further tells you that if you set up an off-shore foreign corporation to make your investment, then the earnings will not be subject to U.S. taxes.

 The specialist has a “government currency trader” call you, and that person speaks rapidly and makes you feel ignorant and unsophisticated because you do not quickly grasp how the program works. The specialist then has a “retired federal judge” call you to determine your suitability to participate in the “secret program.” By now, you are eager to get started making this huge sum of money. You happily wire the specialist his “modest” $20,000 commission to his off-shore bank account, and arrange with your bank to wire $200,000 to your offshore corporation, which the specialist has  set up.  All  the money transfers, and you wait for your profits to start. And you wait, and wait, and wait………..
WHAM! You have been scammed!  THERE IS NO “SECRET PROGAM” FOR TRADING U.S. TREASURY SECURITIES. Never has been. You are the victim of clever, polished, articulate con men and women who specialize in  swindling educated business and professional people. You had a need for funding.

The con man gained your confidence and made you want to believe
him. Angry and embarrassed, you contact the FBI. The FBI agent assigned to your complaint is sympathetic, but gives almost no encouragement for recovery of your funds. She has heard this sad tale many times before, and knows that the con men have carefully covered their tracks, and your money had disappeared.

The lesson here is simple: If it sounds too good to be true, then it is. ALWAYS consult with a trusted financial advisor, CPA or attorney. ALWAYS! 

ETHICAL WILLS: “Putting Your Values on Paper”

At turning points in our lives, many of us ask ourselves questions of the heart and soul.
       
Have I fulfilled my purpose?
       
What will I be remembered for?
       
What kind of legacy have I passed along to my family and others?

An ancient tradition for passing on personal values, beliefs, blessings, stories,    and advice to relatives and for future generations, an ethical will can mean more to friends and family than any material possession we could bequeath to them.

A legal will (“Last Will and Testament”) should always be prepared by an attorney and bequeaths property. A living will is a document that contains specific instructions about medically related issues. Both legal wills and living wills are legal documents under the law. An ethical will is not  a legal document; however what all three types of documents have in common is the fact that they provide instructions to other as to the intentions of the author. Legal wills bequeath valuables, while ethical wills bequeath values. Ethical will are also called “loving wills” or “personal values wills.” Ethical wills offer a communication link between the generations.

What’s in an ethical will? Why not include your philosophy, affection and values in your estate planning documents?  Every estate plan reflects transfers of personal values, good or bad, to future generations. Values are not permanent. They must  continuously be strengthened, changed, or refined.  Consider leaving a lasting written reminder of the personal values you believe to be most important.  As you think about what you might include in your own ethical will, you need to realize that there will be contributions from your past, present and future. Some of our values and beliefs have been passed on to us from our predecessors. Our own life experiences shape our character and help form a foundation of our values and principles.  Looking into the future, ponder what we might yet become and what we have left to do.


Here are some common themes found in ethical wills:

Common themes from our past:

• Meaningful personal or family stories
• Lessons learned from personal or family experiences
• Regrets

Common themes from the present:

• Personal values and beliefs
• Values and beliefs of the author’s faith community
• Expressions of love and gratitude
• Apologies

      Common themes for the future:

• Blessings, dreams ,and hopes for present and future generations
• Advice and guidance
• Requests
• Funeral plans

Here is a sample format for your ethical will:

ETHICAL WILL OF

(YOUR NAME) 

Dear_________________________________
If I had the choice to give you personal values or worldly goods, I would give personal values.  With personal values, you get worldly goods and much more.  Personal values include faith, loyalty,  honesty, ability, compassion, sportsmanship, and I hope, a sense of humor.

I have fully enjoyed life, being blessed with exceptional family  and friends. During my lifetime, I tried to make a difference. Hopefully, I have had some success in giving to  you and to future  generations the personal values I believe to be important. Perhaps these words will remind you of choices.

I give the following personal values to those who will accept them:
            Religious faith  (explain)
            Loyalty (explain)
            Love (explain)
            Honesty (explain)
            Work ethic (explain)
            Curiosity (explain)
            Compassion (explain)
            Civility (explain)
            Sportsmanship (explain)
            Sense of humor (explain)
            Creativity (explain)
            Patriotism (explain)

   Thrift (explain) 

   Other (explain
 

Date____________________________    Signature_________________________ 

Location________________________
 

Prepare your own Ethical Will now.  Review it and change it regularly. Transfer

the same values while you are alive.  Make sure that selected loved ones and

friends read it now or later. 

Children and Inheritance: How to help make sure you never have a daughter (or son) like Paris Hilton

Most of us are familiar with the sad spectacle of the downward spiraling life of Paris Hilton.  This young woman had the good fortune to be born into one of the richest families in America. To be blunt, she has brought shame to her family and disgrace to herself by flaunting a lifestyle of conspicuous consumption and wild behavior. A few months ago, she received much media attention as she was hauled off to jail, screaming and wailing like a spoiled toddler. While some will no doubt defend Paris’ right to be a free spirit, I take a more old fashioned view. In the Gospel of Luke we read: “For everyone to whom much is given, from him much will be required; and to whom much has been committed, of him they will ask the more.” (13:48). Now let us look at a contrast.

At the beginning of the 20^th century, oil baron John D. Rockefeller was the richest man in America. Instead of leaving generations of spoiled, pampered lay-abouts, he left a legacy of children and grandchildren who were governors, a U.S. Vice President, a U.S. Senator, educators, business executives and philanthropists.

Now, I can hear some of you dear readers saying:” OK, Robert, that’s interesting, but we don’t have any Hiltons and Rockefellers in West Tennessee.” To this I reply: “No, we don’t, but no matter the size of the inheritance,  beneficiaries need to be protected from the same things. They need to be protected from other people and from themselves.”  It has been my experience that most families actually have more in assets than they realize. It is indeed true that we don’t see great industrial fortunes in West Tennessee. However, with 401(k)s, IRAs, life insurance, and real estate, many families have significant assets.  All parents should be concerned with how inheritance will affect the lives of their children. Some children are able to responsibly manage money at  age 18, while others are unable to at age 58. Research has shown that most people who receive significant amounts of money, whether by inheritance or by winning the lottery, do not keep it. Sixty per cent burn through their money by the second generation, and ninety per cent by the third generation.  Surely there is a better way!

Now I don’t know where the Hiltons went wrong in raising Paris, but I do know what Rockefeller did right. He successfully passed on to his descendents the virtues of hard work and civic responsibility.  Several generations of Rockefellers have been useful, productive citizens who not only carefully managed their considerable inherited wealth, but also used it to benefit and improve society as a whole. Long before the term “giving back” became a popular buzz word, the Rockefeller family was doing just that.

Patriarch John D. Rockefeller did at least two things that influenced his family’s attitudes toward the use of money. First, he started a family tradition when his children were very young. He held regular scheduled family meetings to discuss finances with his children. Now, this is one of the hardest things for parents to do.  Most parents find it far easier to talk to their children about sex than about money. We avoid talking about money because such talk so often leads directly to tension. It is so hard for us to talk to others, especially our children, about what money ---earning it, inheriting it, spending it, saving it, gifting it---means to us. Why is this?  Well, we happen to live in a society and culture with money as its center. Not only do we tend to judge others economically, we judge ourselves as well.  When the topic of money is brought up in the family, issues of shame, fear and guilt often appear. For many of us, money has multiple meanings, some obvious and some not so obvious. Money can mean personal security, freedom from want, and the ability to help others. It can also mean greed, revenge, dependence, jealously, favoritism, vulnerability, and deception.  Our attitudes about money shape our values and behavior, and these deep feelings become the blueprint for how we live our lives from a financial perspective. Our beliefs and ideas about money come to us from our families, and while children listen to what their parents say, they place more importance on what they see their parents do. If we are not articulate in communicating financial decisions within our families, issues can lay dormant, waiting to confront us in the future.

Ideally, parents should start the tradition of family meetings when children are as young as five or six, keeping the meetings short and fun. The guiding purpose should be to instill values, not to lecture. Children can learn by way of example how careful management of money is a key to success. Teenagers may think family meetings are weird at first, but will later come to appreciate being included if the parents take it seriously and if everyone’s opinion is given some weight. Grown children will appreciate being part of the family decision making process instead of wondering what they will find when they finally get access to their parents financial matters. Family financial meetings are not just for the wealthy; all families can benefit from honest and open communications about money vales and practices. Before each meeting, prepare a written agenda, and keep notes of the meeting. At the end of a meeting, decide what everyone is supposed to do before the next meeting. Years of such meetings will give parents the confidence that their children will be able to handle money. If you are uncomfortable with the idea of holding family meetings, ask a trusted financial professional, such as your attorney, CPA, or investment advisor to facilitate them.

The second thing that Rockefeller did to protect his heirs from misusing an abundance of money involved the wise use of trusts. He left the majority of his wealth in a series of trusts that insured that it would stay in the family for generations.  Like family meetings, trusts are not just for the wealthy. Trusts are created to protect beneficiaries from creditors, from predators, and from themselves.  Parents who are worried that their children may not use an inheritance wisely may find that trusts offer reassuring alternatives to direct bequests of large sums of money. For example, a trust may include a “spendthrift clause” that keeps the trust assets from being subject to the claims of the beneficiary’s creditors. With such a clause in place, the beneficiary cannot pledge the trust assets for his or her debts, including alimony.  Trust may contain provisions that ensure that children and grandchildren use their inheritance in ways that the grantors of the trust would prefer. For example, trust distributions can be tied to educational expenses, home purchases, medical expenses, or matching retirement account contributions.  Trust provisions can also tie distributions to the beneficiaries’ earnings or community service, to help ensure that they become useful, productive citizens. Trusts can also dole out cash in installments, rather than all at once.  For example, money can be distributed to beneficiaries in thirds, such as one third at 30, the second third at 35, and the balance at 40. Trusts can also offer significant tax advantages, often combined with charitable remainder features.

Critics of trusts say that they are rigid, full of administrative costs, and make heirs feel like their parents or grandparents are trying to control things from the grave. I have personally been involved in the administration of trusts for many years, and assure you that in almost all cases, the benefits of trusts far outweigh any of the downsides. Trust documents can and should be drawn to provide flexibility. So very often the trust provides the beneficiaries with much needed financial management and guidance until they gain the maturity and experience to manage their own funds.

The sad example of Paris Hilton need not be repeated in your family. Begin by taking the appropriate steps to instill the right values about money in your children. Talk to them about money. Help them learn to manage it. Don’t hesitate to use trusts for their financial protection. Your thoughtful actions can help insure that money becomes a blessing to your children instead of a curse.

“Preventing Inheritance Conflicts”

Question:  How can I prevent inheritance conflicts between my children?

Answer: Few things in life are as emotionally charged as the issue of inheritance. It has been well said that “if you really want to know a person’s true character, share an inheritance with them.” It is a fact of life that many families have been ripped apart by perceptions of unfairness in inheritances.

Recall Jesus’ parable of the prodigal son in Luke chapter 15. The prodigal had demanded an advance on his inheritance, which he promptly wasted  on riotous living. When he returned to his father, broken and shamed, the father was so overjoyed at his younger son’s return that he ordered a celebration. What was the reaction of the dutiful, hard working older son who had faithfully stayed by his father’s side? Anger at how the younger prodigal had been favored. Inheritance conflicts are as old as civilization. Your children may be perfect, but you really don’t know them until they divide your money.

In hundreds of estate planning conferences, I have heard the overwhelming majority of parents insist that their adult children will get along, no matter how the estate is divided. However, my experience as an estate planner has shown time and again that this is simply not true.  In order to help minimize inheritance conflicts between your children, here is a rule of thumb: “If you don’t want the blame---treat your children the same.” Inheritance conflicts can destroy otherwise good family relationships and those conflicts can last for generations, affecting not only your children but grandchildren, cousins,  and in-laws.

Let’s look at two examples: (1.)  Mr. and Mrs. Smith  have two children. Their daughter is a respected physician who was a dutiful, hard working child and who went to college and medical school on full academic scholarships. Their son never finished college, and has bounced from job to job, taken bankruptcy, and has constant trouble making his child support payments. Because the Smiths see the son as having greater needs, they decide to leave the majority of their estate to him. What does this say to their daughter? That she is being punished for her success!  (2.) In our second example, Mr. Jones has three children. He was ill for many years and his two daughters took care of him while his son took care of his farm. In  his will he left the farm, which comprised 80% of his estate, to his son. Can you imagine how his daughters felt?

However parents decide to divide an estate, the children  will take this as their final grade  as to how the parent felt about them.  A will is not the place to play favorites; that it is a recipe for resentment. Wills also tend to awaken ancient sibling rivalries; children, even adult children are extremely sensitive to perceptions of unfairness. A “performance-based” inheritance plan—favoring or punishing one child – is a surefire recipe for relationship breakdown among the heirs. 

Most children expect to inherit something from their parents. However, most families never openly and honestly discuss how the inheritance will affect all concerned. If the parents are not open, then grown children may fall prey to old feelings of   favoritism, resentment, deprivation, or being cheated or lied to. On the other hand, parents may resent feeling pressured to give up their financial privacy. Elderly parents may worry that revealing too much information may affect how their children will treat them.

The best way to help prevent inheritance conflicts between your children is through open and honest communication. Family meetings,  clear written explanations, and planning for dividing family heirlooms can go a long way in creating understanding and acceptance. Consult an experienced estate planner and ask him or her to facilitate an inheritance discussion with your children. To help avoid future potential inheritance conflicts, make your heirs part of the solution so that one or more of them will not become part of the problem.

Yes, it is your money, and you may do with it as you wish. But at what cost to your family?  You will be remembered by your heirs. Will your life be an inspiration to others, or will it represent chaos and destruction?  The lives of your heirs can be enhanced by your thoughtful and inspired inheritance planning. Or they can be destroyed.

A Gift for Your Spouse

Question: What should I give my spouse for Mother’s Day or Father’s Day?

Answer: How about giving your spouse some peace of mind by giving her or him a RED NOTEBOOK?

A RED NOTEBOOK is a collection of important family financial information housed in a large, bright red 3 ring binder. We suggest using a RED NOTEBOOK simply because it is easily to recognize and find.  A good place to keep the RED NOTEBOOK is in your bedroom closet, where it is easily accessible, but out of the way of prying eyes. Go to an office supply store and buy the  largest bright red binder in stock; twenty or more tabbed dividers, and  a supply of plastic sheet protectors.

Your family’s RED NOTEBOOK should at a minimum contain the following tabbed categories:

1. Family Advisors: attorney, accountant, financial advisor, banker, insurance agent, etc.
2. Records Locator: Your RED NOTEBOOK should contain copies of essential documents, and the Records Locator section should clearly indicate where the originals may be found, such as safe deposit box, file cabinets, computer, etc.
3. Safe Deposit Box Information: This section should tell where the safe deposit boxes and the keys are located, along with  a detailed list of contents.
4. Emergency Instructions: This may very well be the most important part of your Family’s RED NOTEBOOK. Both spouses should write detailed instructions about what to do in the event of a family emergency, such as death, illness, disaster, etc. Your instructions should contain information about obtaining emergency cash for living expenses, people to contact, people to seek for help, and also people to avoid.
5. Funeral Instructions: Each member of the family, including children, should write detailed instructions of how they want to be remembered. The wording of the obituary, choice of music, pall bearers, type of service, etc. are highly personal choices that should not be left to the emotions of the moment. Cemetery plot and pre-need funeral arrangement information also belongs here.   
6. Copy of Wills and Trust Instruments.
7. Copy of powers of attorney, living will and advance health care directives,  birth and death certificates, adoption information, etc.
8. Copy of deeds to real property, and mortgage documents.
9. Employee Benefits: Information and current statements for 401(k)s, profit sharing and pension plans, group insurance benefits, etc.
10. Personal Investments: Information on brokerage accounts, mutual funds, IRAs, annuities, etc.
11. Life Insurance: Copies of policies.
12. Property and casualty Insurance: Copies of policies.
13. Income Tax: Copies of last 2 years’ returns and information on location of tax records.
14. Bank accounts.
15. Debt and Credit Card Information.
16. Personal Financial Statements.
17. Businesses: Information on family owned businesses, such as buy-sell agreements, partnership agreements, corporate documents, etc.
18. Veterans’ Benefits
19. Medical Information: Medical history for family members, health and long term care insurance information, etc.
20. Miscellaneous. 

By giving your spouse a RED NOTEBOOK, and keeping the information current, you are sending a clear message that says: “I love and honor you and want to protect you from the threat of financial uncertainty if something suddenly happens to me.” You could not give a finer present for Mother’s Day or Father’s Day. A RED NOTEBOOK makes a wonderful  present for grandparents and adult children, too!

When should I be concerned about estate planning?

 Right now.

At the very moment you read these words, you should be concerned about estate planning. Far too many of us neglect estate planning, thinking “my estate is too small.” Regardless of the size of your estate, it can benefit from thoughtful  and  inspired planning. The main concern of estate planning should be people first, and assets and taxes second. The people we are talking about are you and your loved ones. When most of us think of estate planning, we think of inheritances. An inheritance is what one person receives from another. It can be property, values, culture, or traditions. Inheritance is more than the transfer of land and other forms of wealth from one  generation to the next. It is also the transfer of heritage, love, and values. However, as we are all concerned with meeting the physical needs of our loved ones, the estate planning discussion typically begins with a discussion of our property and what we want to do with it.

Here are some of the many considerations in estate planning: wills, trusts, durable powers of attorney, living wills, advance directives, probate, life insurance, joint ownership, estate, inheritance and gift taxes, generation skipping taxes, income taxes, pensions, 401(k)s, IRAs, Roth IRAs, lump-sum distributions, executors, trustees, guardians for minor children, special needs beneficiaries, powers of appointment, special valuation of farms and businesses, collectibles, charitable giving, beneficiary designations, family limited partnerships, annuities, asset protection planning, disability, long-term care, Medicaid planning, buy-sell agreements, spend-thrift provisions, etc.  While the list is extensive, all of us can find some areas that touch our financial lives.  While the estate planning process is crucial for the financial well being of our loved ones, it need not be
intimidating.

The essential task of estate planning can be addressed in four phases: Identify, Plan, Implement, Review.  In the Identification phase, you should meet with a trusted financial advisor who will help you identify your property and help you clarify your goals and desires for using it to benefit your loved ones and other interests, such as charity.

In the Planning phase, your advisor will help you develop a written estate plan.

In the Implementation phase, your advisor will work with you and  your attorney in taking action steps to arrange your finances and property  to meet your goals.  For example, in this step you might sign wills or other estate planning documents. 

The final phase is  Review, and it is crucial, for estate planning is  a process  rather than a one time event. Your estate plan should be reviewed  when there is a significant change that affects your life. This could be the birth or death of  a loved one, a change in career, family, income, or health, a new tax law, etc. You should meet with your advisors to review your estate plan when these events occur.