Oconee Estate Planning Blog

When Should You Use a Charitable Remainder Trust in Estate Planning?

Rising prices for investments and real estate is making owners of these assets concerned about paying exorbitant taxes amid discussions of possible changes in the near future. According to a recent article from The Street titled “Retirement Saving and Charitable Remainder Trusts,” having a strategy on hand to prepare for or even avoid these taxes is a wise move.

People who are charitably inclined may want to take a closer look at how Charitable Remainder Trusts, or CRTs, can potentially reduce taxes and provide a generous gift to worthy charities.

There are two basic types of CRTs: the Charitable Remainder UniTrust, or CRUT, and the Charitable Remainder Annuity Trust, or CRAT. In both types of trusts, the charity receives the “remainder” of the principal once the income interest ends. Income from the trust is given to a non-charity beneficiary for a certain period of time, or as in many cases, for the entire life of the beneficiary until it’s time for the remainder principal to be donated.

The key difference between the CRAT and the CRUT are how the income payment is calculated. In a CRUT with a 5% payout, the 5% is based on the value of the CRUT each and every year. Obviously that payment amount fluctuates according to the performance of the assets held by the CRUT. In a CRAT, payments are fixed based on in the initial contribution made to set up the account. Your estate planning attorney will be able to recommend the right vehicle for you and your family.

A CRT may be funded with highly appreciated assets because selling within the CRT results in no capital gains to the donor. Any proceeds may be reinvested to generate the needed income, while at the same time potentially growing the remainder asset for charity.

An administrator is hired to evaluate the trust to ensure its compliance, and the administrator’s role is to advise the trustee on the amount of the distribution annually to the beneficiary.

Since the charity is the remainder beneficiary, the grantor is not able to deduct the entire amount of the contribution to the CRT. The deduction is determined by the income payments selected and the terms of the CRT. There are software programs used to calculate the approximate deduction based on the input. The higher the income payment, the lower the deduction.

Note that if you are giving highly appreciated long-term capital gains assets, only 30% of the adjusted gross income can be given. The rest may be carried forward for five years. This should be considered when determining how much to contribute to the CRT.

The choice of CRTs lets you design a desired income stream from the trust. The taxability of the CRT is based on the types of assets used. There are four tiers, as defined by the IRS: ordinary income (which includes current year and accumulated income) and qualified dividends; capital gains; other tax-exempt income; and return of principal.

To solve the problem of choosing a charity, many prefer to use a Donor Advised Fund as a beneficiary. The DAF can be treated like a charity for tax purposes. The DAF lets you control how the account is funded and the timing of distribution of assets. The charities do not need to be named when the CRT is first created.

The CRT can be a very useful tool in estate planning for people who would be making gifts to support meaningful causes with or without tax benefits. Your estate planning attorney will be able to help you set up a CRT to work in tandem with the rest of your estate plan.

Reference: The Street (June 25, 2021) “Retirement Saving and Charitable Remainder Trusts”

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Key Dates for Planning Retirement

Just as there are many types of retirement benefits, there are many dates to keep in mind when creating a retirement plan. Some concern when you can make larger contributions to retirement accounts and others have to do with withdrawals. Knowing the dates for each matters to your retirement planning, according to the recent article title “10 Important Ages for Retirement Planning” from U.S. News & World Report.

When should you max out retirement savings contributions? The sooner you start saving for retirement, the more likely you’ll retire with robust tax-deferred accounts. Tax breaks and employer matches add up, as do compounding interest returns. The 401(k) contribution limit in 2021 is $19,500. Wage earners can deposit up to $6,000 in a traditional IRA or Roth IRA. If you’re in your peak earning years, traditional IRAs and 401(k)s may be better, since your tax bracket is likely higher to be higher than when you started out.

Catch-up contributions begin at age 50. Once you’ve turned 50, you can make catch up contributions to 401(k)s—up to $6,500—and up to $7,000 in traditional IRAs. That’s for 2021. If you’re able to take advantage of these contributions, you can put away additional money and qualify for even bigger tax deductions.

401(k) withdrawals could start at 55. If you left your job in the same year you hit the double nickel, you can take 401(k) withdrawals penalty-free from the account associated with your most recent job. The “Rule of 55” lets you avoid a 10% early penalty, but you’ll still have to pay income taxes on any withdrawals from a 401(k) account. However, if you roll a 401(k) account balance into an IRA, you’ll need to wait until age 59½ to take IRA withdrawals without any penalties.

When does the IRA retirement age begin? The magic number is 59½. However, traditional IRA distributions are not required until age 72. All traditional IRA withdrawals are also taxable.

Social Security eligibility begins at age 62. The earlier you start collecting Social Security, the smaller your monthly benefit. Your full retirement age depends upon your date of birth, when the benefit amount will be higher than at age 62. If you work after signing up for Social Security, your benefits could be temporarily withheld if your salary is higher than the annual earnings limit. If you retire before your full retirement age and earn more than $18,960 per year, for every $2 above this amount, your benefits will be reduced by $1. Benefits will be recalculated once you reach full retirement age.

Medicare eligibility begins at age 65. Enrollment in Medicare may take place during a seven-month period that begins three months before the month you turn 65. Signing up on time matters, because Medicare Part B premiums increase by 10% for every 12-month period you were eligible for benefits but failed to enroll. Are you delaying enrollment because you or your spouse is still covered by a group health plan at work? Make sure to sign up within eight months of leaving your job or health plan and avoid the penalty.

Social Security Full Retirement Age is 66 for most Baby Boomers. 67 is the full retirement age for workers born in 1960 or later. Millennials and younger generations qualify after age 67.

If you can wait until 70, you’ll max out on Social Security. Social Security benefits increase by 8% for each year you wait to start payments between Full Retirement Age and age 70. After age 70, the number remains the same.

RMDs begin for 401(k) and IRA retirement accounts at age 72. These mistakes here are expensive! Your first distribution must be taken by April 1 of the year you turn 72. After that, annual withdrawals from 401(k)s and traditional IRAs must be taken by December 31 of each year. Missing a required distribution and you’ll get hit with a nasty 50% of the amount that you should have withdrawn.

Reference: U.S. News & World Report (July 28, 2021) “10 Important Ages for Retirement Planning”

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What Should I Know about Melanoma?

Melanoma usually presents as asymmetrical or rough-looking moles that aren’t defined by a border. A spot on the skin that continues to grow in size or change is another indication, and a once-monthly body scan is an easy way to keep track of any of these concerning characteristics. However, there are also some more unusual signs that could signal the presence of the skin cancer.

“Melanoma is such a rule breaker,” says Elizabeth Buchbinder, M.D., an oncologist at the Dana-Farber Cancer Institute in Boston and an assistant professor at Harvard Medical School told AARP in the article titled “4 Warning Signs of Melanoma That Are Easy to Miss.” The doctor notes that “little moles can cause big trouble, and new spots can grow and spread quickly, and so knowing what to look out for, it’s super important.” AARP gives us four warning melanoma signs to know about so no spot goes unnoticed.

1. The “Ugly Duckling.” Folks with a lot of moles are at increased risk for melanoma, but don’t start counting your spots or panicking over every mark on your body. Rather, you should pay attention to the moles that stand out — those that are darker than the rest, have changed recently or are more oddly shaped. The doctor calls these “ugly ducklings.”

“If you have a bunch of dark moles, but you have 50 of them, they’re not all melanomas,” Dr. Buchbinder says. “But if you have one mole that really looks different than the others, and it’s kind of that ugly duckling, that’s the one that you really want to get looked at and checked.”

2. “Where the sun don’t shine.” Most melanomas are thought to be caused by ultraviolet (UV) light. However, not all of them come from sun exposure. Melanoma can develop anywhere on the body, including in places where the sun doesn’t shine—the soles of your feet or the palms of the hand. It can also appear as a dark streak under a fingernail or toenail. Although it’s rare, melanoma can also develop on the eye, inside the mouth, or on the scalp.
3. Red, white, and blue hues. This cancer is often depicted as dark-brown moles, but it can actually present in a variety of colors. The cancer may have a blue tint to it, from deeper pigmentation, or it can appear red, the result of an immune response. In addition, melanoma can also look like a rash and take on a pink hue. When the spot doesn’t get better with creams and other treatments that normally treat a rash, go see your doctor. Another sign of a melanoma can be lack of color. Some of these cancerous spots lose their pigmentation completely or partially, leaving a halo of white around a darker spot.
4. Bleeding or Itching Skin Spots. If a mole on your body starts to itch or becomes more painful or tender, go see a doctor. Likewise, if the surface of a mole changes, such as oozing or bleeding, or if it becomes scalier and doesn’t heal on its own.

Preventing Melanoma. You should wear sun-protective clothing and UV-blocking sunglasses, and use plenty of sunscreen to help prevent melanoma. Plus, those on certain blood pressure medications, including diuretics such as hydrochlorothiazide and calcium channel blockers such as nifedipine, for example, need to be extra cautious when spending time outside. However, because not all skin cancers are caused by sun exposure, frequent skin checks are also a critical role in prevention.

Reference: AARP (July 9, 2021) “4 Warning Signs of Melanoma That Are Easy to Miss”

Suggested Key Terms: Senior Health, Melanoma

How Do Taxes Work If I Live in One state and My Spouse Another?

It’s not uncommon for one spouse to retire while the other spouse continues to work. It’s also not uncommon for a couple to own a home in two states (think primary residence and vacation home or cabin). Dick, the retired spouse in our example, stays in their Florida home more frequently than his wife, Jane, because of her job. She’s still in New Jersey. Dick’s now in Florida about half the year. He has a deferred salary he earned while working back in the Garden State, and it will be paid out annually over the next eight years. Dick will be required to pay federal and New Jersey income tax no matter where he lives, and he says he’s okay with paying his fair share. Should Dick become a Florida resident and what happens if Jane stays a New Jersey resident?

NJ Money Help’s recent article entitled “What happens to taxes if I move to Florida and my wife stays in N.J.?” says that the primary reasons why people change their resident state are taxes and retiring from their employment. Based on Dick’s willingness to continue to report his deferred income as a New Jersey source and pay New Jersey taxes, he should have no problem claiming Florida as his domicile if he takes the proper steps.

A domicile is the place you consider to be your permanent home, even if you may have multiple residences. Besides the test of your presence in a state, the other major factors in establishing a change in domicile are demonstrating intent to remain in the new state and to abandon your former domicile. These are more difficult to prove than physical presence. There’s also no one factor that tax authorities consider conclusive.

Since Jane will remain a New Jersey resident, Dick will have to plan carefully to prove his intentions. Some of the steps might include:

• Transferring voter registration and voting in local elections in the Sunshine State
• Changing the address on personal bank and investment accounts
• Changing his driver’s license, car license, and registration
• Establishing relationships with professionals, such as doctors or accountants, in Florida; and
• Updating his legal documents such as wills, trusts, powers of attorney and living wills with Dick’s Florida address.

While no one thing will make or break Dick’s domicile claim, taxpayers are wise to provide as much evidence as possible to tax authorities. Although income taxes aren’t the primary reason for claiming Florida as his domicile, most taxpayers are motivated to change their domicile to a state with a lower tax or no tax rate like Florida. The state a taxpayer leaves, such as New Jersey, will focus on clear and convincing facts that support Florida as Dick’s new domicile state.

As for tax reporting, when it comes time to file Dick’s tax return, he has the ability to change his domicile to Florida while Jane continues to work in New Jersey and claim New Jersey as her domicile. They can continue to file a joint federal tax return, but Dick would then file separately for New Jersey state purposes.

Reference: NJ Money Help (Aug. 12, 2021) “What happens to taxes if I move to Florida and my wife stays in N.J.?”

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Is Assisted Living or Memory Care a Better Choice?

Forbes’ recent article entitled “Assisted Living vs. Memory Care: Which Is Right for You?” explains that assisted living is a long-term care facility that lets seniors remain independent, while providing help with daily tasks. It often provides a small apartment, housekeeping, community meals and activities.

It’s critical to thoroughly review the support needs and challenges facing the person you’re supporting and to try to look honestly at what’s working and what’s not.

The best candidate for assisted living is a person who needs assistance with their activities of daily living but still has their reasoning skills intact. Residents can enjoy socialization and activities with people their own age. This helps with isolation after spouses and friends are no longer with them.

Assisted living residents frequently require personal care support. However, these seniors are able to communicate their needs. Residents may receive help with taking medicine, bathing, toileting and other activities of daily living, or ADLs.

Memory care facilities are secured facilities that serve the needs of those with some form of dementia. These facilities typically have smaller bedrooms but more available, open and inviting common spaces. Research shows the way memory care facilities are designed can be helpful in easing the stressful transition from home to a long-term care community. This includes softer colors, a lack of clutter and clear signage.

Confusion and memory loss can cause anxiety. That’s why having a predictable routine can help. As dementia progresses, a patient may forget how to do normal activities of daily living, such as brushing their teeth, eating, showering and dressing. Memory care facilities ensure that these needs are met.

A memory care facility typically has a smaller staff-to-patient ratio because an individual suffering from dementia has greater care needs. Staff will frequently undergo additional training in dementia care.

A memory care facility isn’t always a standalone community. Assisted living or skilled nursing homes may have a separate memory care wing where seniors get the same socialization and activities but with 24/7 protection.

If possible, having both options in one facility can be a plus because the person can start in a less restrictive type of setting in assisted living with the option to transition to memory care as needs, abilities and interests are changed by the condition.

Both types of care have some autonomy but help with hygiene and medication management. However, staff in a memory care unit is specifically trained to work with people with cognitive impairments.

Reference: Forbes (Aug. 16, 2021) “Assisted Living vs. Memory Care: Which Is Right for You?”

Suggested Key Terms: Elder Law Attorney, Long-Term Care Planning, Assisted Living, Nursing Home Care, Disability, Elder Care, Caregiving, Dementia, Alzheimer’s Disease

What Exactly Is a Trust?

MSN Money’s recent article entitled “What is a trust?” explains that many people create trusts to minimize issues and costs for their families or to create a legacy of charitable giving. Trusts can be used in conjunction with a last will to instruct where your assets should go after you die. However, trusts offer several great estate planning benefits that you don’t get in a last will, like letting your heirs to see a relatively speedy conclusion to settling your estate.

Working with an experienced estate planning attorney, you can create a trust to minimize taxes, protect assets and spare your family from going through the lengthy probate process to divide up your assets after you pass away. A trust can also let you control to whom your assets will be disbursed, as well as how the money will be paid out. That’s a major point if the beneficiary is a child or a family member who doesn’t have the ability to handle money wisely. You can name a trustee to execute your wishes stated in the trust document. When you draft a trust, you can:

• Say where your assets go and when your beneficiaries have access to them
• Save your beneficiaries from paying estate taxes and court fees
• Shield your assets from your beneficiaries’ creditors or from loss through divorce settlements
• Instruct where your remaining assets should go if a beneficiary dies, which can be helpful in a family that includes second marriages and stepchildren; and
• Avoid a long probate court process.

One of the most common trusts is called a living or revocable trust, which lets you put assets in a trust while you’re alive. The control of the trust is transferred after you die to beneficiaries that you named. You might want to ask an experienced estate planning attorney about creating a living trust for several reasons, such as:

• If you’d like someone else to take on the management responsibilities for some or all of your property
• If you have a business and want to be certain that it operates smoothly with no interruption of income flow, if you die or become disabled
• If you want to shield assets from the incompetency or incapacity of yourself or your beneficiaries; or
• If you want to decrease the chances that your will may be contested.

A living trust can be a smart move for those with even relatively modest estates. The downside is that while a revocable trust will usually keep your assets out of probate if you were to die, there still will be estate taxes if you hit the threshold.

By contrast, an irrevocable trust can’t be changed once it’s been created. You also relinquish control of the assets you put into the trust. However, an irrevocable trust has a key advantage in that it can protect beneficiaries from probate and estate taxes.

In addition, there are many types of specialty trusts you can create. Each is structured to accomplish different goals. Ask an experienced estate planning attorney about these.

Reference: MSN Money (July 9, 2021) “What is a trust?”

Suggested Key Terms: Estate Planning Lawyer, Probate Court, Inheritance, Asset Protection, Will Contest, Trustee, Revocable Living Trust, Irrevocable Trust, Probate Attorney, Estate Tax

Do I Need Witnesses for a Power of Attorney?

A power of attorney (POA) is a legal document that gives an individual (known as “the agent” or “attorney-in-fact”) the authority to act on behalf of another person (called “the principal”).

The agent can have broad legal authority or limited authority to make decisions about the principal’s property, finances, or medical care. A POA is frequently used in the event of a principal’s illness or disability, or when the principal can’t be present to sign necessary documents for financial transactions.

The types of powers of attorney include:

• Conventional, also known as a limited power of attorney;
• Durable, which lasts for a lifetime unless you cancel it;
• Springing, which only comes into play for specific events; and
• Medical, also known as a durable power of attorney for healthcare.

Each state has its own specific requirements for powers of attorney.

For example, nj.com’s recent article entitled What makes a power of attorney legal in N.J.?” says that, under New Jersey State § 46:2B-8.9, a power of attorney must be in writing, duly signed and acknowledged, and notarized. The acknowledgement may be taken by an authorized individual in the state of New Jersey or in any other state or foreign jurisdiction. In the Garden State, there’s no witness requirement for a power of attorney.

Also, New York’s power of attorney statute requires two witnesses.

Many financial institutions examine the POA for witnesses and will question a document without a witness.

So if the validity of a POA is called in question, a witness would be needed to swear that he or she saw the maker of the POA execute the instrument as their own act, therefore.

So even if witnesses aren’t required, it’s wise to have a witness on the power of attorney.

Regardless, do not go it alone. Engage the services of an experienced estate planning attorney admitted to practice law in your state.

Reference: nj.com (Aug. 2, 2021) : What makes a power of attorney legal in N.J.?”

Suggested Key Terms: Elder Law Attorney, Estate Planning, Power of Attorney

What are My Best Estate Planning Moves?

Tickertape’s recent article “5 Estate Planning Tips That Aren’t Just for the Wealthy” explains that a common misconception is that estate planning isn’t necessary if your estate assets amount to less than the 2021 federal estate tax exemption of $11.7 million per individual.

But most of us can benefit from estate planning. This can help protect your assets for your heirs. Estate planning includes creating a last will or revocable living trust, making certain that you have the right beneficiaries, and creating a health care directive. Creating a solid estate plan can decrease the odds that your family will have to deal with a problematic probate and reduce the amount of money because of unneeded taxes.

Create a Will. A last will is one way to let people know how you want your assets taken care of after you die. Plus, a last will should include information about who should act as guardians for minor children and care for any pets. Talk to an estate planning attorney about the specific laws for probate to make sure you do it correctly.

Name Your Beneficiaries. Review your beneficiary designations and make sure they’re up to date. When there’s a major life change, you should look at your beneficiary designations (e.g., life insurance and retirement funds), update your last will, and make sure everything matches. This includes charities as well as individuals. There are estate planning strategies designed to help you pass your assets on, but none of these will help if you don’t have your beneficiaries properly designated and assets aligned with your estate plan.

Ask Your Attorney About a Trust. A fully funded revocable living trust can be great tool to pass your assets on while potentially helping your heirs avoid probate. There are many different types of trusts that can be used to provide a variety of benefits. Much depends on your situation, so work with an experienced estate planning attorney.

Power of Attorney. Estate planning also includes documents in the event you become incapacitated. Signing a power of attorney allows an agent to make decisions on your behalf if you’re incapacitated. Find a person you trust to handle these decisions and have an estate planning attorney prepare the legal documents to ensure that everything is correct.

Think About Giving Now. You don’t need to wait until you’re gone to provide resources to your family. In 2021, you can give up to $15,000 to each recipient without paying the gift tax. If you’re married, each spouse can give $15,000. When you give to charity now, instead of waiting until you pass, you may claim a tax deduction, whether you donate directly, give stock, or set up a donor-advised fund. This allows you to benefit now—along with your beneficiaries.

Reference: Tickertape (June 25, 2021) “5 Estate Planning Tips That Aren’t Just for the Wealthy”

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What Upgrades Can I Make to ‘Age in Place’?

With our aging population, we need more solutions to help seniors live well. That’s where universal design comes in: it’s a concept that tries to make products and structures usable by everyone, regardless of age, ability, or other factors.

Money Talks News’s  article entitled “8 Essential Home Features for Aging in Place” says that aging in place requires homes that accommodate our needs as we age. The article sets out a list of eight design features buyers focused on accessibility are looking for based on survey data from the National Association of Home Builders’ 2021 “What Home Buyers Really Want” report.

8. Lower countertops. The kitchen is the center of most homes, and it’s an important part of universal design. Countertops that are three inches lower than the standard height of 36 inches lets seniors and those with limited mobility to fully participate in meal prep. You can round all countertop edges and corners because fewer 90-degree angles may reduce bumping and bruising and minimize injury in the event of a fall.
9. Lower kitchen cabinets. According to Aging in Place, upper kitchen cabinets that are three inches lower than standard height lessens the tendency to overreach and potentially lose balance. Lower cabinets that feature pull-out shelves, “lazy Susan” corner cabinets and easy-pull handles offer additional convenience for seniors and those who rely on a wheelchair or mobility scooter.
10. Bathroom aids. For seniors, using the bathroom safely can a challenge. Aging-in-place design recommends these features to make bathrooms more practical and convenient:

• A walk-in tub or a shower with non-slip seating
• An adjustable or hand-held showerhead
• A comfort-height toilet
• Ground-fault interrupter (GFI) outlets that reduce the risk of shock; and
• Grab bars near the toilet and shower.

5. A Stepless entrance. To age in place safely, AgingCare recommends that a home’s main entrance not have steps and should have a threshold height of no more than a half an inch. Here are a couple of ways that an entryway without steps can make life better for seniors:

• It facilitates smooth entrance/exit by wheelchair, scooters, or walker
• It decreases the risk of falls, particularly in snowy or icy conditions; and
• It makes it easier to get deliveries and enter the home carrying groceries.

4. Non slip floors. According to the CDC, more than 35 million older adults fell at least once in 2018, and 32,000 died from fall-related injuries. To help, non-slip surfaces like low-pile carpet, cork and slip-resistant vinyl can minimize the risk.
5. Wide hallways. Wide hallways (defined as at least four feet wide) let seniors access every space in their home with a walker, wheelchair, or scooter, or with the assistance of a home health aide.
6. Wide doorways. A standard doorway can be as narrow as 24 inches, which is a tight fit for seniors who rely on wheelchairs, scooters, or walkers. Seniors like wide doorways, defined as at least three feet wide. According to the ADA, doorways should have at least 32 inches of clear width. To help with an easy transition from room to room, thresholds should be as flush to the floor as possible.
7. Full bath on main level. Not just convenient, it’s a critical safety feature for seniors. Besides eliminating the need to go up and down stairs several times a day, main floor bathrooms also allow the elderly to (i) respond to incontinence issues more quickly; (ii) practice regular self-care; and (iii) access a private space when required.

Reference: Money Talks News (Aug. 5, 2021) “8 Essential Home Features for Aging in Place”

Suggested Key Terms: Disability, Elder Care, Aging in Place

Checklist for Estate Plan’s Success

We know why estate planning for your assets, family and legacy falls through the cracks. It’s not the thing a new parent wants to think about while cuddling a newborn, or a grandparent wants to think about as they prepare for a family get-together. However, this is an important thing to take care of, advises a recent article from Kiplinger titled “2021 Estate Planning Checkup: Is Your Estate Plan Up to Date?

Every four years, or every time a trigger event occurs—birth, death, marriage, divorce, relocation—the estate plan needs to be reviewed. Reviewing an estate plan is a relatively straightforward matter and neglecting it could lead to undoing strategic tax plans and unnecessary costs.

Moving to a new state? Estate laws are different from state to state, so what works in one state may not be considered valid in another. You’ll also want to update your address, and make sure that family and advisors know where your last will can be found in your new home.

Changes in the law. The last five years have seen an inordinate number of changes to laws that impact retirement accounts and taxes. One big example is the SECURE Act, which eliminated the Stretch IRA, requiring heirs to empty inherited IRA accounts in ten years, instead of over their lifetimes. A strategy that worked great a few years ago no longer works. However, there are other means of protecting your heirs and retirement accounts.

Do you have a Power of Attorney? A POA gives a person you authorize the ability to manage your financial, business, personal and legal affairs, if you become incapacitated. If the POA is old, a bank or investment company may balk at allowing your representative to act on your behalf. If you have one, make sure it’s up to date and the person you named is still the person you want. If you need to make a change, it’s very important that you put it in writing and notify the proper parties.

Health Care Power of Attorney needs to be updated as well. Marriage does not automatically authorize your spouse to speak with doctors, obtain medical records or make medical decisions on your behalf. If you have strong opinions about what procedures you do and do not want, the Health Care POA can document your wishes.

Last Will and Testament is Essential. Your last will needs regular review throughout your lifetime. Has the person you named as an executor four years ago remained in your life, or moved to another state? A last will also names an executor for your property and a guardian for minor children. It also needs to have trust provisions to pay for your children’s upbringing and to protect their inheritance.

Speaking of Trusts. If your estate plan includes trusts, review trustee and successor appointments to be sure they are still appropriate. You should also check on estate and inheritance taxes to ensure that the estate will be able to cover these costs. If you have an irrevocable trust, confirm that the trustee is still ready and able to carry out the duties, including administration, management and tax returns.

Gifting in the Estate Plan. Laws concerning charitable giving also change, so be sure your gifting strategies are still appropriate for your estate. An estate plan review is also a good time to review the organizations you wish to support.

Reference: Kiplinger (July 28, 2021) “2021 Estate Planning Checkup: Is Your Estate Plan Up to Date?

Suggested Key Terms: Relocation, SECURE Act, Stretch IRA, Guardian, Executor, Power of Attorney, Health Care Directive, Trusts, Trustee, Estate Planning Attorney, Successor, Charitable Giving, Last Will and Testament, Inheritance Taxes