Does your estate plan look like this old mine? The pieces are there, but you just don’t know if it is going to work. Not all things stand the test of time, and that includes estate plans.
Is it time to review your estate plan?
DeAngelis Legal has updated and administered estate plans drafted before 2017 and a few common issues have arisen. These issues include:
1. You can’t find the originals.
The original documents (or signature pages) are missing. The probate court will not accept copies, therefore we will be required to open a formal probate if the originals cannot be located.
2. Improper Titling.
Assets are not properly titled in the name of the trust or have improper beneficiary designations. Failure to transfer each asset to the trust may require your beneficiaries to open a probate to transfer the assets.
3. Changes in the tax code.
The trust does not incorporate the changes made by the 2012 American Taxpayer Relief Act, the Tax Cuts and Jobs Act of 2017 and the Secure Act of 2019. These new laws enacted changes that significantly impact estate plan documentation and planning, including portability, increased exemption amounts and limitations on the stretch out of retirement accounts. Tax concerns include:
- Should you accelerate gifts if your assets will be over the estate tax exemption after December 31, 2025?
- Does the trust unnecessarily split into two shares (a Survivor’s Trust and a Family Trust) at the death of the surviving spouse which will require separate accounts, accounting and tax returns? Is this split appropriate given your situation?
- Do the terms of the Family Trust permit the surviving spouse to make a QTIP election for such trust, this allows the assets of such trust to be eligible for a step up in basis at the second spouse’s death?
4. Outdated Administrative Provisions.
The documents do not contain updated administrative provisions. For example provisions granting your fiduciaries the power to access, use and control your digital devices, assets and related electronic accounts.
5. Agents appointed are unavailable.
The agents named under the documents have died, are disabled or are no longer willing to serve in such capacities.
6. Documents are stale.
Financial and Health Care Powers of Attorney are outdated. Financial and healthcare institutions prefer that these documents be recently signed. It is time to prepare new documents if your documents are over five years old, even if there are no changes in the succession of your agents.
DeAngelis Legal now has two attorneys to assist you with your planning depending on your needs, whether simple or complex. Attorney Quinn DeAngelis has over 30 years of experience assisting some of the most successful individuals and business in Arizona with their business and estate planning needs. Attorney Garren Carroll has over 10 years of experience, mainly assisting clients with simple estate plans and general business planning.
We would be happy to meet with you to review and update your estate plan. Call 480-281-1512 today to schedule an appointment.
The post Is it time to review your estate plan? appeared first on DeAngelis Legal.