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How do you know when it is time to review your estate planning? Here is a list of questions that will help you decide. (Download a printable PDF of this list)
A. Have there been changes in your family?
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Do you have grandchildren you wish to include in your estate planning? |
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Have your children’s circumstances changed (e.g. Are you concerned about their receiving an inheritance and having it impacted by a divorce, creditors, etc.)? |
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Are there new people in your life that should be named in your will (e.g. birth, adoption)? |
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Are you planning on getting married and need a prenuptial agreement? |
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Have you gotten married since you signed your old will? (This is an exceptionally important time to sign a new will even if you make no changes since the new marriage impacts the old will.) |
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Have you moved to a new state? |
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Has someone you named as a beneficiary in your will passed away or become disabled? |
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Do you have a new charity you would like to remember? |
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Are your personal representative, attorney-in-fact for finances, attorney-in-fact for health care, guardian, and/or trustee still the right fiduciaries for you? |
B. Have there been changes in your assets?
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Has the value of your estate substantially increased or decreased? |
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Have you acquired real estate outside of Washington? |
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Have you reviewed how your IRA/401K beneficiary designations fit with your will/trust? |
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Do you need help thinking through how the beneficiary designations on your life insurance, investment accounts, and/or bank accounts fit with your will/trust? |
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Would a Revocable Living Trust better serve your goals? |
C. Do you need to plan for incapacity?
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Has there been a change in your or your spouse’s health? |
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Have you been denied long term care insurance and are you concerned about long term care costs? |
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Should you include authority for gifting in your durable power of attorney? Do your goals and family situation make this a good idea? |
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Does your health care directive clearly state your desires about the medical treatment you want if you can not speak for yourself? |
D. Do changes in the law dictate changes in your estate planning?
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Community Property.
If you are married and new to Washington, it is very important to review the new options you have in your estate planning documents now that you are in a community property state. This is true even if you have moved from another community property state since each state’s community property law are distinct. |
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Law Changes. |
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A recent change in federal law – the Health Insurance Portability and Accountability Act of 1996 or HIPAA - has made it advisable to revise health care powers of attorney to comply with federal law. |
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The estate tax law is always changing and should be periodically reviewed if your asset level puts you at risk. ( See chart below) |
E. Passage of Time.
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Although you probably do not need to have an attorney review your documents every three to five years, you yourself should read your documents periodically. (Doing so has the added benefit of being an insomnia aid.) Read your documents with this list in hand to see if any issues are triggered. If so, it’s time to schedule a review appointment.
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The life-time exemption from estate tax is scheduled to change as follows:
Year |
Federal Exemption Amount |
Washington Exemption Amount |
| 2006-08 |
$2,000,000 |
$2,000,000 |
| 2009 |
$3,500,000 |
$2,000,000 |
| 2010 |
Repeal of estate tax (maybe) |
$2,000,000 |
| 2011 |
$1,000,000 |
$2,000,000 |
Elizabeth A. Perry has been helping Clark County residents with their estate planning and probate needs since 1976. She is a frequent seminar speaker. Her practice emphasizes probate, Medicaid issues, wills,
trusts, incapacity issues, durable powers of attorney and guardianships. Phone: (360) 816-2485 Fax: (360) 816-
2486 E-mail: liz.perry@landerholm.com.
(The above should not be construed as specific legal advice and is intended for general information purposes only.)
©Copyright 2003, Landerholm, Memovich, Lansverk & Whitesides,
P.S. |
