TEXARKANA MAGAZINE
which offer valuable estate and health care assistance are powers of attorney for both business and medical purposes, living wills or directives to physicians, and declarations of guardians in the event of future need. KNOW YOUR RESOURCES If all of this is beginning to sound a little daunting, well, it is. Do not make the mistake of being penny-wise and pound-foolish. This is where your rubies will mean the most, and finding competent and compatible professionals—financial and legal—to guide you through the process will determine your degree of success in attaining exactly what you want to accomplish. Getting the right advice at the right time can help you avoid unintentional and unanticipated tax consequences, preserving your estate for those whom you truly intend to benefit (and pencil whipping the government—legally, of course—can also provide a unique sense of achievement if not unmitigated joy). REEVALUATE YOUR PLAN Completing your estate plan can be a fulfilling and relieving experience, but it is not something you can set and forget. Periodically, you should revisit it to confirm that it continues to comport with your goals and desires. In any event, you should always review and reassess your plan whenever you experience (i) a material change in the value of your estate; (ii) an interest in
changing your beneficiaries or any parties nominated to serve as personal representatives of your estate, trustees of any trusts, attorneys-in-fact, or health care agents; or (iii) a major change in the applicable tax laws. History reflects that Solomon’s legacy was not exactly what he expected. The author of “spare the rod and spoil the child” did not necessarily heed his own advice. When Rehoboam assumed his father’s throne, his behavior resulted in a rebellion so severe the kingdom was divided, and the future Solomon envisioned for his son and the monarchy was irrevocably changed. No amount of wisdom—or rubies—could reverse the damage. Planning for an unpredictable future, first with us and later without us, could not be more important. Good stewardship demands it, and our families deserve it. Acknowledging that wiser minds have failed at what we now seek to do, I suggest you hold on to your rubies. Keep them close and be prepared to use them generously when the opportunity arises. Freddy is an Assistan t Professor of Accounting at Texas A&M University- Texarkana and an attorney Board Certified in Tax Law and in Estate Planning and Probate Law by the Texas Board of Legal Specialization. His practice is limited to matters of federal and state taxation, wealth transfer and asset protection planning, probate and the administration of estates, and the formation and operation of business, professional and nonprofit entities. You may find him at www.nortonandwood.com.
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BUSINESS & POLITICS
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