CONSIDERATIONS IN ESTATE PLANNING
Here are few considerations to weigh in planning your estate:
¨ If you leave assets directly to minor children, the guardian (even the child's surviving parent) must keep records of even routine use of the inheritances and petition the court for any unusual expenditures on the children's behalf. Instead, you may be wise to bequeath your property to a trust established in the children's names, and to name their guardian as trustee.
¨ If you give your executor or personal representative broad powers to settle disputes or sell property as he or she sees fit, it will not be necessary to seek permission from the court for each activity.
¨ It is wise to avoid provisions likely to be ruled invalid or to cause a challenge from "neglected" children. If you seek to disinherit a child, it should be unequivocally indicated in your will that this is your intent. Also, bequests that appear as favoritism or slights may cause challenges to the will or, just as damaging, ill feelings in your family.
¨ There is little that can be done after death to relieve your estate from taxes if you have not properly planned the disposition of your estate.
¨ Anytime your circumstances change significantly, your estate plan probably should be updated. These are some significant factors that might call for a modification of your plan:
- Change in tax laws
- Change in marital status
- Change of ownership or value of property
- Birth, marriage or death of a child
- Change in income or employment status
- Change in business ownership
- Relocation
- Change in your health or the health of a beneficiary
At a minimum, you should have your estate plan reviewed every three to five years.
¨ Your will is effective until you change or revoke it. You may alter your will be executing a new one or by adding a "codicil". If you make changes to your will by writing on the document itself, you may invalidate the entire will.
¨ Keep your affairs in order and maintain an inventory of all your property. Take some time to educate your spouse and lawyer about the property and where you keep your inventory.
¨ If you own your house and checking account jointly with your spouse, those items will not be probated and your spouse will have immediate access to the account and continued shelter after you die.
¨ Married couples should work closely together in estate planning so that family objectives can be met regardless of who dies first.
¨ The best assets to give as lifetime gifts are those that are gaining in value because the future appreciation is excluded from your estate for estate-tax purposes.
¨ Employ an experienced lawyer for your estate plan. This is an area that is extremely complex.
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DISCLAIMER: Law Offices of Walter J. Zukowski & Associates does not take responsibility for how you use this document. By use of this document, you acknowledge that you have read the sub-page entitled, "Terms and Conditions", and agree to be bound by them. You are strongly advised to consult with your own attorney.