Quiz: How Well Do You Know Your Own Estate Plan?
As adults, we rarely face a multiple-choice exam or a pop quiz. The tests that come our way tend to be real-life ones: moments that reveal how prepared we actually are for the unexpected.
That is how your estate plan is supposed to work. The true test of your plan does not arrive in your attorney’s office or while you are sitting at the kitchen table reviewing documents. It happens when life changes and the plan has to go into action.
Until then, your plan may feel like so many words and contingencies: abstract, distant, hard to recall in detail. You remember the main parts, though, so that when the time comes, the plan can be dusted off and put to work.
Right?
That is the hope. But if years have passed since you last updated your estate plan, you may find some details there that you did not expect or clearly remember. Those surprises could turn into friction at exactly the wrong moment if you, your plan, and your decision-makers are not on the same page.
Having an estate plan and knowing what is in it are two different things. A practice test can reveal whether your plan is ready for the real thing or needs a little more prep time.
Why Your Estate Plan Should Not Be a Distant Memory
The brain absorbs a great deal of information every day. Most of it is quickly forgotten.
Research suggests that people can forget up to 90 percent of newly learned information within hours or days if they do not revisit it. This “forgetting curve” is the opposite of the learning curve.
The reason we do not remember much is that the brain operates on a use-it-or-lose-it basis. We fail to retain what we do not actively recall. On the other hand, reviewing learned material at regular intervals can help to preserve it for longer periods.
An estate plan will go into use whether or not you remember its contents. You will have no chance for a final review. There are rarely study guides or supplemental materials to guide your executor, trustee, or power of attorney agent. The test of your plan may be open book, but once the book has been opened, you and your family are on the clock.
Testing Your Knowledge: Your Estate Plan Review Checklist
The number of Americans with an estate plan is low and has declined in recent years: Only around 25 percent of Americans have a will, down from 33 percent in 2022. Procrastination and the belief that they do not own enough assets are the top reasons for not having a plan.
The following is a list of questions designed to test how well you know your estate plan. For each of the following, make a note of which ones you can answer easily and which ones give you pause.
- Who is named as executor of your will?
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- Why this matters: Your executor is the person responsible for carrying out your stated wishes. If they do not know they have been named—or can no longer serve—your estate’s administration could be delayed and suffer other setbacks.
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- Who is the successor executor if that person cannot serve?
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- Why this matters: An executor who is unwilling or unable to step in, or who is no longer the right fit, should have a backup. Without one, the court may have to appoint someone that you would not have chosen.
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- At what age do your children or grandchildren receive outright any inherited assets under your current plan?
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- Why this matters: The timing of distributions can matter as much as the amount. An inheritance age that once seemed appropriate may no longer fit the beneficiary’s maturity, financial habits, or life circumstances.
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- Who is legally designated to serve as guardian of your minor children or dependents?
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- Why this matters: If you have minor children but no named legal guardian for them—or have a guardian who is no longer appropriate—it could result in a judge who does not know you, your kids, or your family dynamics deciding whom to appoint for their care.
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- Who can make financial decisions for you if you cannot?
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- Why this matters: Estate planning is not only about what happens after death. A comprehensive plan also covers you during your lifetime. A financial power of attorney allows the person you name as an agent to pay bills, manage accounts, and handle financial matters on your behalf if you lose the ability to do so.
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- Who can make medical decisions for you if you cannot speak for yourself?
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- Why this matters: The agent named in your healthcare power of attorney should know that they have been named and understand your wishes before a health emergency.
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- Do your beneficiary designations match your estate plan?
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- Why this matters: Retirement accounts, life insurance, and some financial accounts may pass outside your will. Outdated beneficiaries of these accounts or policies could result in assets going where you neither intend nor expect.
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- Are your major assets (such as your home or brokerage account) titled to match your plan?
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- Why this matters: A trust or estate plan may not work as intended if key assets were never retitled or coordinated with the plan (for example, you created a trust to avoid probate but forgot to deed your house into the trust’s name).
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- Do the right people know where to find your original estate planning documents?
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- Why this matters: An estate plan can be delayed when the people named to carry it out cannot find the original signed documents. A photocopied version may not satisfy a judge if court involvement becomes necessary.
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- Does your plan address digital assets, passwords, online accounts, and important records?
- Why this matters: As more of our lives move online, digital assets are becoming increasingly common and valuable. But standard, older powers of attorney may not authorize access to online assets or accounts. Your family should have the information required to locate accounts, access information, and manage digital property.
Grading Your Estate Plan Preparedness
While there are no right or wrong answers to this estate plan quiz, it is worth remembering that life, and your estate plan, are not graded on a curve. The result is often pass or fail. They either meet expectations or they do not.
How did you do, and what does it say about your plan? Here is a cheat sheet:
- Answered most or all with confidence: Your plan is working for you. You are engaged and informed.
- About half: Some details have faded. This is normal, and it is worth refreshing your memory with your attorney.
- More than a few gave you pause: This is very common and is not a problem; but it is a sure sign that you are due for an estate plan checkup with your attorney.
Luckily, this is just a practice test. The real test of your plan may not come for years, although there is no way to know for sure. That is why it is so important to be ready, understand what your plan says, and keep the key pieces in writing and up to date.
Plan a Study Date With Your Estate Planning Attorney
After you die, there are no do-overs, retakes, or makeup assignments. You do not know when the test will come, but you have a good idea of what the questions will be: They will be about the who, what, and when that your estate plan is designed to answer. You can provide those answers now, with time left on the clock, or let somebody else provide them later, when time has expired.
Now is the time to prepare. Last-minute cram sessions or extended deadlines are not allowed in court. Study while you still can and position your plan to pass with flying colors when the test is handed out.
If this quiz revealed gaps, uncertainty, or outdated choices, schedule time with your estate planning attorney to review your documents and make sure that your answers remain the right ones.
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Tempe, AZ 85282
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