A properly executed estate plan can spare your family unnecessary hardship and expense in the face of illness, accident, or untimely death, but even the best plan needs periodic maintenance. Laws and tax rules change regularly, and documents that made sense a few years ago may now be out of date, missing valuable opportunities, or exposing your family to avoidable taxes and administrative costs. A good rule of thumb is to review your plan every couple of years or whenever you experience major life events such as births, deaths, marriages, divorces, or significant financial changes. As you assess whether your plan still serves you, consider whether your will or trust has been professionally reviewed in the last two years and whether you have a current healthcare power of attorney that authorizes someone you choose to make medical decisions in an emergency. Ask whether your plan is structured to minimize state and federal estate taxes (including those affecting your house, life insurance, and retirement accounts) and whether you have taken steps to reduce the risk of will contests or administration disputes. Confirm that the guardians named for your minor children still reflect your wishes, that your plan provides creditor and lawsuit protection for assets passing to a spouse or children, and that any revocable living trust you have is fully funded to avoid the delays and expense of probate. Finally, consider whether your children’s inheritance would be protected if a surviving spouse remarries. If any of these answers are “no” or “I’m not sure,” it is time to meet with an estate planning attorney to update and realign your documents with your current goals, assets, and family dynamics.
If you would like to learn more, or set up a complimentary estate planning consultation with one of our Madison, Wisconsin estate planning attorneys, please contact us and we can schedule a time to meet.