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If you have had any kind of estate planning documents prepared in your lifetime — documents such as a will, a trust, or powers of attorney — you deserve to be congratulated. Most people still believe that estate planning is only for the rich and they fail to provide even the most basic protection for their families.
But let me ask you a question: how long has it been since your documents were prepared? When was the last time you had them updated?
A well drafted estate plan should address the needs and concerns of your family at the time it is drafted. But your needs and concerns — and even the composition of your family — will change over time. When those changes occur, you should also change your documents to keep them current.
Here’s a list of topics that will help you determine if your estate planning documents are in need of a tune-up:
1. Has the value of your property gone up or down dramatically? If it’s gone up, you may need a will or a trust that can help you minimize estate taxes. If it’s gone down, you may be able to simplify your documents. If you have simpler documents you can usually make things easier (and less expensive) for the executor or trustee of your estate.
2. Has your marital status changed? Have you recently married? Did you get divorced? Are you separated? Have you remarried?
3. Have there been any births, adoptions or deaths in your family?
4. Has your attitude towards a particular family member changed with the passage of time? Is anyone engaged in a lifestyle, a behavior or an addiction that you do not approve of?
5. Do any of your family members suffer from an illness or a disability that requires special care?
6. Do you have a charitable cause that you would like to support?
If you answered yes to any of these questions you should set aside some time to review all of your estate planning documents. Make sure the documents still address all of the needs and concerns of your family. You should also have the documents reviewed by an experienced estate planning attorney every few years. The attorney can advise you as to whether any tax laws have changed that could impact your planning.
Disclaimer: The information presented in this column may or may not match your individual situation. Be careful not to treat this column as specific legal advice, as it may not meet your individual needs. It may give you a solid basis for discussion with your own attorney. You should consult with your personal attorney before you take any action on this or any legal issue. Also, please be aware that laws change, so this column is valid only as of the date it was published. This communication does not create an attorney-client relationship between the author and the reader.
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