How
Often Should I Review My Estate Plan in Illinois?
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[February 25, 2024]
The Ever-Evolving Nature of Estate Planning - Estate
planning, like life itself, is an ever-evolving journey. There is no
hard and fast rule about when you should review your estate plan,
but with new tax laws taking effect, now might be the perfect time.
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At
Woods & Bates, P.C., we remain educated on legislative changes and
understand the importance of synchronizing your plan with those changes.
While the federal estate tax exemption is currently quite generous at a
little more than thirteen million dollars per individual, without action
by Congress, the federal estate tax exemption amount is set to revert
back to seven million per person on January 1, 2026. Illinois has a
separate estate tax with a significantly lower exemption amount at four
million dollars per person. What’s more, this State estate tax system
doesn’t offer “portability” to married individuals, potentially leaving
your survivors with an avoidable tax liability.
Assessing Your Estate Plan's Effectiveness
When you embark on the journey of reviewing your estate plan, there are
several key areas to focus on to ensure it still serves its intended
purpose. First and foremost, take a close look to see if your estate
plan is still aligned with your goals. Are your assets set to go where
you want them to? Are your loved ones adequately protected, and will
they be well cared for? These are the fundamental questions that should
guide your review.
Evaluating Your Appointed Individuals
Another crucial aspect of estate plan reviews involves assessing the
individuals appointed to various roles in your plan. Are they still
capable of fulfilling their responsibilities? Are they even alive? Most
importantly, do you still want them to hold those positions? Life
circumstances change, and the people who you were once close to may not
be who you want to raise your children anymore.
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Aligning Your Assets With Your Objectives
Ensuring that your assets are owned in a way that supports your
planning objectives is a vital part of the review process. Your
estate plan may be carefully crafted, but if your assets are not
aligned with it, it could thwart your intentions. Additionally,
consider whether you want to make any gifts while you’re still alive
as part of your estate plan.
Don't Set It and Forget It
It’s crucial to remember that an estate plan is not a “set it and
forget it” arrangement. Life is dynamic, and so should your estate
plan be. Taking just an hour to review your plan with a competent
attorney could potentially save you and your loved ones a
significant amount of time, money, and effort down the road.
Secure Your Legacy Today
When it comes to estate planning, timing is everything. With the new
tax laws in play and life constantly evolving, it’s wise to revisit
your estate plan regularly.
[Blinn Bates, Attorney at Law]
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