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Estate Documents - Updates and Reviews
We continue to be surprised to discover that clients have not looked at their wills, trusts and other estate documents in years. This is often the case, even when there has been some transitional or life-changing event. Disregarding the review and update of estate plans has little to do with taxes. It really is critical to ensure that your estate plans accomplishes what you want and does it efficiently.
We continue to be surprised to discover that clients have not looked at
their wills, trusts and other estate documents in years. This is often the case,
even when there has been some transitional or life-changing event. Disregarding
the review and update of estate plans has little to do with taxes. It really is
critical to ensure that your estate plans accomplishes what you want and does it
efficiently.
As a guide, and hopefully as a reminder to review your own plan, let's look
at the events that can impact an estate plan. Individuals you have named as
guardian and/or trustee may now be deceased, or relations with these people may
have changed. This may involve a few simple amendments.
Additions to the family, through adoption, birth, marriage need to be
included in order to guarantee fairness in ultimate distributions. Naturally,
divorce creates an obvious need to review the estate plans of both
parties.
State laws change frequently. It is wise to check to see whether or not
your state has enacted new laws that impact your estate planning documents. Of
course, if you move or establish residence in a new state, don't assume that the
new state's laws are the same as your previous state's.
Once children reach majority, a review of estate planning provisions is in
order. This will impact the status of guardians and trustees, It also effects
the ages of distribution of assets.
If there has been a significant increase or decrease in your estate
size, the nature of your estate plan and the documents required to address your
intentions will be impacted. The purchase of life insurance should include a
review of the value of an irrevocable trust, or the review of an existing
trust.
Distributions at age 70 1/2 from retirement plans require a review and
update. Beneficiary designations should be reviewed and discussed.
The passage of time is reason enough to review your plans. We recommend a
review every three to five years.