When was the last time you reviewed your estate plan? Despite our regular reminders every four years, only some people take the time to review it. While it may not lead your mind, managing your strategy is crucial. I have listed reasons you should do this soon, and your active participation in this process is critical to its success.
- Changes and Family Dynamics: I am referencing life changes, including getting married, divorced, having or adopting a child, health issues, moving to a different state, or the death of a loved one. E.g., many of us are in second marriages and blended families; you want to ensure your children from previous marriages are cared for. What about a new child? Have you designated a guardian for your minor children?
- Beneficiary Updates: Your children are now adults and making their own lives. It's crucial to consider if we should change their inheritance. Do you wish to change amounts or designate when distributions are made rather than a sum? You are now proud grandparents; do you want to include them as beneficiaries or set up trusts for their future education?
- What about your named trustees? Time has passed, and the trustee you named years ago may no longer want to serve, have health issues, have aged, moved, or have fallen out of relation. Maybe someone new is in your life who you think would do a better job. You protect your wishes and goals by ensuring you have the right trustee.
- Medical or Special Needs: If one of your children is born or has developed special needs, you might need to create a trust to ensure that the child is eligible for government benefits and be taken care of.
- Finances have changed: Should you review your plan because you have received a sum of money, whether from an asset sale, an inheritance, or even a lottery win? Is your plan created in a tax-efficient manner, leveraging tax strategies that minimize tax impacts and safeguard more of your wealth? Have you purchased another home, moved your assets around
- Do you own a Business? Many of us have worked hard and dedicated our lives to building a successful business. Who will take over that business once you sell or retire, and what succession planning have you done to ensure that the company is managed or transitioned to the right individual, preserving its legacy and success?
- Changing Laws: It is essential to review your plan now that the 2017 tax law is set to expire. Without congressional action, which is likely not to happen, this expiration will lead to high-income taxes and lower estate tax exemptions. Those with substantial assets should take advantage of the opportunity to save significant tax dollars. Federal and state tax laws change frequently; without a review, they could inadvertently cause your beneficiaries to pay more taxes.
Reviewing your trust can be simple. Contact our office at 301 468 3220 or through our website, altmanassociates.net, to schedule an appointment to come in and chat about your estate plan if you believe some of these reasons are not included in your estate. We will assess whether your trust aligns with your current goals and circumstances.
