While the old rule of thumb might have been to review your estate plan at least every 3–5 years, or if a significant life event occurred (marriage, divorce, new child, or significant financial change), the “new normal” of estate planning is to review your plan every year. An hour or two of time to assure that the issues discussed in this post, along with a host of others that might affect you, are addressed is essential to keep your finances and family safe, trusts properly maintained, and your estate plan current. The economic, legal, and tax changes have become so significant and frequent that an estate checkup should be as routine as an annual physical. We can facilitate the process by creating the balance sheet and financial data essential to the review and, if you wish, coordinating the meeting of your advisers.
If your will was not reviewed since the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 passed in December 2010, you should have it looked at; given the changes in the law, formula clauses typically used in many wills can have varying impact.
Estate planning is critical for everyone to address. The process requires a regular review and coordination of your advisers, but to obtain the protections you and your loved ones need, much more than a will needs to be addressed. Let us know how we can help.
By: Sandra L. Towns, CPA/PFS, CFP®
