Life is full of possibilities. 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.

While you are alive and well, you can make changes to your estate plan. After you pass away, your plan is effectively—but not entirely—set in stone. Incorporating milestones into your estate plan is one way to provide some flexibility 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
You can build in some flexibility in your estate planning with if-then statements. 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 that, “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, for example, “I leave my house to my spouse”.

If-then clauses can be combined to account for numerous future possibilities. So, in addition to “If my spouse predeceases me, then I leave my house to my oldest son,” you could specify that “If my son is not employed, then I put my home in a trust to be managed by [Trustee Y].”

Common Beneficiary Milestones Used in Estate Plans
Conditional provisions that are not necessarily if-then statements can also be used. These provisions can include gifts or distributions that are triggered at specific times or milestones.

For example, you might consider some of these events in your estate plan:

• A child turning eighteen or twenty-one. A child celebrating a milestone birthday could trigger an action in your estate plan, such as the child receiving distributions from a trust to which they are a beneficiary.
• Completing a degree or certificate. A gift in your will 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.
• Financing a first wedding. Parents often assist with paying for wedding expenses for their children. A clause in an estate plan can direct distributions to assist a child in paying for a first wedding.
• You might hesitate to leave money to a beneficiary who is bad with money or has a poor employment record. Distributions can be tied to proof of the beneficiary being employed for a certain length of time or to match what they have earned from employment.
• 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. Your estate plan can define the term required and the method of verification.
• Having children. Having a child is expensive. To help with the expenses of childbirth and childrearing, consider including an estate planning provision that kicks in extra money to a family member when they give birth, adopt, or require assistance with reproductive technology, such as in vitro fertilization.
• Reports show that most Americans are not financially prepared for retirement. If you want to ensure that a beneficiary continues to work but can retire comfortably at an appropriate age, consider rewarding them with a lump sum inheritance to be used once they reach retirement age.

These various estate planning milestones can be combined and modified as you wish. You might give wedding money to a child but keep the rest of their inheritance in a trust so that if your child gets divorced, the money and property you pass on will not end up in the hands of their ex-spouse.

Another option is to set up your estate plan to direct more money to someone if the value of a certain account or property rises. Or, if the account performs well, the increase in value could be donated to a charity of your choice. You could also use an if-then statement to provide that a beneficiary receives an extra gift only if they meet a certain milestone. The options are almost endless.

Now Is the Time to Plan for the Future
Although including various if-then clauses and milestones in your estate documents might make things more complicated, you may reach greater peace of mind knowing that numerous possibilites have been anticipated.

It is crucial to make sure that your wishes are expressed in writing. Whatever you decide to do, do not put it off. Act now to create a plan that provides for your loved ones and clearly expresses your wishes. Contact us so that we can assist you with this important planning.