Estate Plan Review

I am often asked how often a will or trust should be updated. Wills, trusts and other estate plan documents need to be updated when there are significant changes in health, family or finances. The best example is when a couple has a child. This is usually the best time to create a will and trust to provide for their family and handle important things like naming a guardian. A plan already in place needs to be amended or restated to address these changes.

I like to review my client's estate plans every five years. This allows us to make sure the decisions previously made still apply and will carry out the wishes of the client. If it's been five years or more, make sure you get your plan reviewed.

Another important consideration forthcoming is the status of the estate (aka death) tax. The federal government currently taxes estates larger than $3.5 million. This law will be repealed next year and then the estate tax threshold returns to $1 million in 2011. Congress will no doubt pass new legislation to change this but it's not entirely clear what the new exemption amount will be. As things develop, check the news or this site for updates.

Don't let a stale will or trust foil your otherwise good intentions. The cost of failing to review and update your documents can be extreme when litigation results from disputes over assets. Simple and inexpensive amendments will insure your wishes are carried out as they change over time.