Transferring wealth & wisdom from generation to generation
Edward E. Wollman, JD, LL.M WOLLMAN, GEHRKE & ASSOCIATES, P.A.
WHEN SHOULD I REVIEW MY ESTATE PLAN?
Legal/Tax Changes: Finally, it’s essential to stay current with any tax law changes, including Federal changes, as well as state and local law changes. Pay particular attention to: • Increases or decreases in the tax exemptions, exclusions, and deductions • Inflation adjustments • Sunset of current tax benefits Health/Lifestyle Changes: It goes without saying that if you have a change in your health status, including a long-term illness diagnosis, it is essential to take inventory of your financial, estate, and long-term care plan. How will this impact your loved ones as well? Here are a few health and lifestyle events that warrant a check-up: • Retirement or major transition • Relocation to a senior lifestyle community
With so much uncertainty in the world, you may be asking the question, “Do I need to review my estate plan?”
If you ask this question, you have already taken the most challenging step; getting started! Once you have designed an estate plan to meet your needs, the next step is ensuring that your documents are up to date, funded properly, and fulfill your ever-changing needs. When do I need to review my estate plan? To be proactive, we recommend an annual self-audit; and a visit with your team of professionals at least annually or bi-annually.
Outside of regular reviews, changes in your circumstances and complex tax laws may warrant a global review of your plan for compliance.
In this article, we will discuss the following changes in circumstance that indicate it’s time for a review: 1. Financial Changes; 2. Family Dynamics/Changes;
• Sale or transition of business (business succession planning) • Health Issues (specifically a long-term illness diagnosis) • A family member diagnosed with special needs
3. Legal/Tax Changes; and 4. Health/Lifestyle Changes.
Financial Changes: Some of the fundamental changes related to your financial situation are as follows: • A significant increase or decrease in net worth, including the sale of a business, market fluctuation, inheritance, or commence retirement • New advisors (accountant, investment advisor, insurance agent) • Desire to build or refine a legacy plan • Divorce or death of a person who provided significant financial resources (spouse, parent, partner, etc.) Family Dynamics/Changes: Changes to family structure, including marriage, divorce, and additional children or grandchildren, can significantly impact your goals and desires concerning your estate planning needs.
Change is inevitable. The key takeaway when considering a review of your plan is to be proactive. Looking ahead can help you avoid unnecessary expenses, taxes, and stress. Remember that it is better to make the adjustments on your schedule and not the government or anyone else.
Visit www.probate-florida.com to read more about this subject and other estate planning matters.
Ed Wollman is a Florida Bar Board Certified Attorney specializing in wills, trusts, and estates with over 35 years of experience practicing in the state of Florida.
Other factors like retirement, moving, or the sale of a business or property can also present new planning opportunities.
Here is a brief list of changes that warrant a review: • Marriage or cohabitation • Divorce or separation
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• Birth/Adoption of a grandchild • Divorce of a family member • Child or grandchild need wealth protection
• Spouse needs assistance by financial coach/trustee • Family members with drug or alcohol addiction issues • The person you selected to run your trust (family member or outside trustee) no longer fits the role • Sale or transition of a business • Sale or purchase of homestead or investment property
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