Estate Planning: Conducting Periodic Estate Plan Reviews

 Posted on December 15, 2015 in Estate Planning

If you already have an estate plan in place, congratulations! You have taken a very important step in securing a future for your heirs. However, it is crucial to also understand that, contrary to popular belief, estate plans are not evergreen. Instead, they must be periodically reviewed and, if necessary, updated. The frequency and timing will vary, based on your particular circumstances, but the following guidelines should help give you an idea of when a review or update may be necessary.

Size of Estate a Factor

Because state and federal tax laws change each year, those with larger estates (i.e. estates that exceed state or federal exemption minimums) should review their estate plans annually. Those with smaller estates may be able to get by with a review every five years, so long as the valuation of their estate remains below the applicable state and federal exclusions and their personal situation has remained the same. There are, however, additional factors that may require a review prior to the one or five year time frames.

Changes in Estate Value

Shifts in the economy can cause the valuation of your estate to either increase or decrease over time. If that fluctuation happens to be more than 20 percent over a two year time period, you may wish to consider updating your estate plan—or, at the very least, reviewing it.

Economic Changes

Economic changes can include both changes that are intentional, as well as those outside of your control. Retirement; a change in your income level requirements; job or occupation changes; formation, purchase, restructuring, liquidation, sale or other major changes in a closely held business; or a shift in insurance coverage (including health, life, liability, medical, and other insurances) are just a few of the potential economic changes that may require a review or revision of your estate plan.

Changes in Your Family Situation

When a family situation changes, wishes or needs often follow suit. As such, your estate plan should be reviewed and/or updated after the birth of a new child or grandchild, the death of a beneficiary, a divorce, remarriage, adoption, or the dependency of elderly parents.

Other Important Changes

While the aforementioned can offer you a guideline, there are infinite reasons and possibilities that may prompt a review or update to your estate plan. Follow your instinct, use common sense, and contact the experienced Illinois estate planning attorneys at Law Office of James F. White, P.C. for advice if you are ever uncertain. Dedicated to minimizing costs while making estate planning as easy as possible, they can assist you in creating or revising your estate plan to ensure it best reflects your specific needs and wishes. Call 630-466-1600 to schedule a free consultation.

Source:

https://www.southstatebank.com/advice/conducting-periodic-review-estate-plan/