REVIEW YOUR ESTATE PLAN

Significant family changes always signal the need to review and revise your estate plan. There are numerous reasons to update your estate plan. Clients often overlook changes in their life which necessitate changes to their Estate Plan. The following are 10 instances when your plan should be reviewed and updated:

1. Marriage.
2. The birth or death of a child.
3. A significant change in the value/makeup of your Estate.
4. Divorce.
5. Relocation to a different state.
6. Changes in family relationships.
7. Changes in the law.
8. Changes in professional or business status and/or relationships.
9. Death of a spouse.
10. Death or incapacity of individuals named as fiduciaries in your current plan.

You should review your plan on an annual basis to consider if any of the above events have occurred. If you are not sure whether these or other events require updating your plan, call your Estate Planning attorney to discuss your situation.

State and federal legislatures have become very active in recent years in changing the laws regarding estate planning, estate administration, and estate and income taxation. This trend is expected to continue. Because of this and also because you may have changes in your financial and/or family circumstances, it is recommended that a thorough review be made of your estate plan by an attorney when these changes occur, or at least every three to five years.

A will can be changed or amended with a codicil, a document executed with the same formality as the will itself. It is not always necessary to completely redraft the old will to make minor changes. The codicil must be in writing, signed by the testator, and witnessed by at least two disinterested parties. You cannot amend a will simply by writing in the margin or crossing out particular provisions. A will may be revoked by making out a new will that expressly revokes the former one, or by completely destroying the original will.

Changes to a trust may be made by restating the trust, or by simply amending it, depending on the circumstances.

Estate planning review is yet another way to protect your assets. It ensures that your wishes are carried out and that your heirs are protected from paying unnecessary taxes and administration costs upon your death.

Jeffery J. McKenna is a local attorney licensed in three states and serving clients in Utah, Nevada, and Arizona. He is a partner at the law firm of Barney, McKenna and Olmstead, with offices in St. George and Mesquite. He is a founding member of the Southern Utah Estate Planning Council. If you have questions or topics that you would like addressed in these Wednesday articles please email him at jmckenna@www.barney-mckenna.com or call 628-1711.