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.