Common questions about estate planning

(The Money Pros) - QUESTION 1

HOW OFTEN SHOULD SOMEONE REVIEW THEIR ESTATE PLANNING?

• Review your estate plan immediately after a major life event
• Quick review each year because changes in the economy and in the tax code often occur on a yearly basis
• You'll want to do a more thorough review every five years

QUESTION 2

WHAT ARE SOME OF THE PROBLEMS THAT CAN RESULT IF SOMEONE FAILS TO UPDATE THEIR ESTATE PLAN

• Unintentionally disinheriting a spouse, child or grandchild
• Unintentional revocation or partial revocation of estate plan
• Failure to have the proper Guardians, Trustees and Executors in place
• Failure to Coordinate Beneficiary designations with your Estate plan
• Failure to properly re-title assets and fund a living trust resulting in Probate
• Failure to reduce estate and income taxes because of changes in the tax laws.
• Failing to implement a business succession plan
• Failing to hold life insurance inside a life insurance trust or have enough liquid assets to pay estate taxes and expenses
• Lack of organization

QUESTION 3

ARE THERE COMMON LIFE EVENTS THAT MIGHT CAUSE ONE TO REVISIT AN EXISTING ESTATE PLAN?

• There has been a change in your marital stauts or that of your children or grandchildren.
• There has been an addition to your family through birth, adoption, or marriage (stepchildren)
• Your spouse or a family member has died, has become ill or incapacitated, or has become dependent on you
• You are retiring
• There has been a substantial change in the value of your assets
• You have received a sizable inheritance or gift

QUESTION 4

CAN CHANGES IN THE LAW NECESSITATE CHANGES IN ONES ESTATE PLAN?

Yes. One example is changes to the exemption amount at both the federal and state level for those who pay estate taxes. Other changes can also occur at the federal or state level, which would cause one to want to review their estate plan. A good estate-planning attorney will keep track of these changes and contact you if necessary.

QUESTION 5

WHAT ARE SOME OF THE MOST COMMONS MODIFICATIONS PEOPLE MAKE TO THEIR PLANS?

Common modifications include changes to beneficiaries. Special bequeaths that may be made from time to time. Changes related to additions to the family. Divorces usually also require modifications to the estate plan.