Estate Planning as a Career

Estate planning is the process of deciding how to effectively transfer your assets, at death, and during your lifetime. Without proper Estate Planning you could unnecessarily lose a sizable portion of your estate to taxes. While avoiding taxes is an obvious reason for Estate Planning, a more important reason may be in its ability to allow you to direct the transfer of your assets after death.

If you have an old Will, it may be time for an upgrade.

Once executed, your will should be updated regularly, especially under these circumstances: A birth, marriage or divorce in the family; a move to another state; a change in tax laws; a change in the status of dependent children; impending retirement; or a change in personal circumstances or needs.

An out-of-date will can be more trouble than having no will at all. Consider a situation involving a man who executed a will in 2001, giving $10,000 to a woman he named as a “friend.” A year later, the man and woman get married. The man dies in 2004. Unfortunately, the man never updated his will. At her husband’s death, the woman claimed her elective share as a wife (one-third of the total estate) rather than abiding by the terms of the will. The man’s children from his first marriage objected. The court could decide that the surviving spouse is limed to $10,000.00 from the estate.

The following is 10 life changes that have the potential to affect your estate and would indicate the need for a revised Will:

Births

Marriage or divorce-yours or one of your children’s

The death or incapacity of a named beneficiary in your will

Changes in your personal net worth

Change of your needs or your beneficiaries’ needs

Change of residence-Do you now live in a different state? Check the laws of that state.

Changes in the tax law

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