Some people think that estate planning is a once in a lifetime project. But, as John F. Kennedy said, “change is the law of life.” Periodic review of an estate plan is essential. Here are the top 10 reasons you need to review your estate plan periodically:
1
Change in Residence
While estate planning documents typically are valid from one jurisdiction to another, each state has its own peculiarities. For example, a couple moving from a separate property state to a community property state might find it advantageous to convert their separate property to community property. This can allow for advantageous income tax treatment of the property at the death of the first spouse.
2
Change in Assets
A significant change in the nature or extent of your assets may give rise to different estate planning opportunities. For example, the acquisition of a farm or business may raise issues of succession planning and discounted gifting.
3
Inheritance
If you or your spouse have received or expect to receive a significant inheritance, there may be new opportunities to reduce taxes or provide creditor protection.
4
Change in Tax Law
As we all know, Congress rarely leaves tax law alone for long. Changes in tax law can mean that your estate plan no longer accomplishes its goals.
5
Changes in Non-Tax Laws
Periodically, state legislatures change substantive non-tax laws. These laws may affect who gets your property or how your trust may be managed.
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