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2006 estate planning checklist
Many people are secure when they determine they are "all-set" because they have completed their estate plan. However, each plan should be reviewed on a regular basis to ensure that their entire plan is in order, not just the documents. It is suggested that a plan be reviewed each time there is a birth, death, marriage or other life-changing event such as an adoption of family member. If not, then it is normally suggested that a plan be reviewed every three to five years, or on some other regular basis, like having a medical check-up, eye exam, dental exam, etc.
It seems that the majority of the Wills that are contested, (the minority of those filed,) are those where a thorough review and revision of documents were probably not attended to in a timely basis. Either the situations changed significantly or the incapacitated decedent did not change documents, which led to a breakdown in communication within the family, and greed took over.
Questions to ask in reviewing a plan:
Is my will still up-to-date?
Does my will meet the requirements of state law? Is there a self-proving affidavit or have I moved to a different state that requires a revision in the new jurisdiction?
Are the named executors under the will still appropriate?
Are there any beneficiaries with special needs for whom a separate trust should be established?
Is my spouse healthy or should there be some additional planning in order to preserve assets in the event of long-term institutionalization?
Is my health proxy up-to-date and does it contain waiver of privacy language?
Is my power of attorney still appropriate relative to my named agent to serve?
Does my power of attorney contain the necessary language to make gifts if necessary?
Are all my assets properly registered to take advantage of the necessary tax advantages and are all beneficiaries coordinated with the plan?
If there are other business assets, such as a family limited partnership or limited liability company, are the shares registered properly to avoid probate?
Am I utilizing the benefits of annual gifting now, rather than waiting until the end of the year? (If a proposed donor dies before the end of the year, the advantage of gifting the annual exclusion amount is lost, so possibly, Christmas should come early!)
Are there family members for whom I feel a trust should be established so that they do not receive their money in a lump sum? This prevents a child's share from being taken by his or her creditors or spouse.
Is the proper amount of life insurance in effect or should I buy more? Or should the current policies be reviewed to ensure that they are the correct types of insurance and provide the proper coverage? Bacon & Wilson, P.C.
Attorneys at Law
Springfield, MA 01103
(413) 781-0560
visit website: www.bacon-wilson.com
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