Estate Law: When Should You Review Your Estate Plan Documents

We all know the importance of estate plan documents.

With the proper expertise and knowledge of your estate, you can have the peace of mind needed to know that you and your family have been provided for. Without the expertise and knowledge needed, your entire estate may be distributed in ways that were not your intentions or your wishes. By realizing the importance of reviewing your estate plan, you can have peace of mind that your family has been provided for in the manner that meets your needs and wishes.

The laws regarding estate planning have changed significantly in the last 10 years and those estate plan documents that were signed many years ago may no longer meet your personal or financial objectives. You should review your estate plan regularly. Failure to change your estate plan documents could result in worse results than if you had not created them at all.

The following are typical events that occur and may warrant a change in your estate plan:

• Births - When a new child or grandchild is born, you may want to consider redistribution of your estate. A trust may also benefit the child or grandchild.
• Disability - A family member with special needs such as disability, illness or other infirmity, usually require special planning to meet that family member's needs without claims from that family's creditors. Public assistance is also available with special planning.
• Deaths - The death of a family member or executor, personal representative, guardian, or trustee will also require changes in your estate plan.
• Marriage - Your estate plan should also be reviewed in the event of marriage. If your child or other beneficiary should marry, this may also require changes in your estate. What effect does the new member of the family have on your estate?
• Remarriage - You may wish to consider a trust for your children or grandchildren in the event of a remarriage. Your children may not be included in your estate should you remarry and predecease your new spouse.
• Non-Citizen Spouse - If your spouse is a non-citizen, they are treated differently under the U.S. tax law. It may be necessary with special tax planning, to transfer property to a non-citizen spouse during your life or upon your death.
• Divorce - You will want to review your estate plan in the event of a divorce in order to know the effect that has upon your child's or other beneficiary's inheritance. For example, you named your divorced spouse as a beneficiary on your retirement plan, or named a married child of yours as joint owners with their spouse who is now divorced, or your estate may actually be in the control of your ex-spouse if your children are minors.
• Retirement - You may have retirement plan benefits which may be subject to a 15% federal excise tax at death in addition to state and federal inheritance and estate taxes. You will want to take a look at the impact of this upon your estate plan.
• Graduations - You will also want to take a look at the cost of your child's or grandchild's education upon graduation from high school. Does your plan keep pace with the continuing rise in the cost of college education? You may want to provide for their education costs now.
• Changes in Domicile - When you move or are transferred to another state, the laws and requirements are different from state to state. They could affect your estate plan documents and the distribution of those assets. Also, you may want to consider the administrative costs of witnesses and fiduciaries named in your estate plan if they come from another state.
• Changes in Size or Nature of Estate - If any of the assets in your estate have been replaced by other assets, you will probably want to review it. If your estate has increased or decreased by 20%, you will want to see how that affects your objectives.
• Charity - If your children and grandchildren are provided for sufficiently, you may wish to leave a portion of your estate to charity.
• Medical Expenses - We all know how expensive long-term medical care can be. If someone in your family has serious health problems, then you will want to review your estate plan.
• Tax Laws - There have been numerous significant changes in the federal tax law over the past several years. They may or may not affect you and the distribution of your estate, but may affect the tax-saving opportunities.

These are just some of the things that may cause you to want to review your estate plan. A general rule of thumb is to review your estate at least every 4 to 5 years.

We would be most happy to discuss your estate plan with you. Please call us with any questions, or make an appointment with my office to revise your estate plan documents.