By Nick Hopkins, CPA, CFP®
Partner, Director of Tax Services
[email protected]
Estate planning is a critical component of personal wealth management. Unfortunately, this important issue is often addressed just once and then buried under other tasks.
As your trusted advisors, the team here at Sponsel CPA Group strongly encourages you to dust off that plan every two to three years and review it in detail with your accountant, attorney and financial advisor. If you put this off, you’ll probably find that the estate plan you spent so much time and money on 10 years ago is far from perfect.
Here are a just a few of the many scenarios that can occur in a decade, many of which are real-life examples that we’ve encountered with dated estate plans:
- The back-up corporate trustee you designated (such as a bank) no longer exists.
- You’ve fallen out of contact with the friend or family member you named the personal trustee and/or executor of your estate.
- Your designated bequests to specific charities are outdated, and you have a new list of passionate causes you want to support.
- Your children have matured into responsible young adults who are now in a better position to take on roles in facilitating your desires.
- The carefree daughter you thought would never have children now has three beautiful babies you adore, but your plan makes no mention of grandchildren.
- Your children and/or grandchildren have developed specific health or education needs not considered in your original plan.
- Your investments have far exceeded your expectations, and you’re not comfortable leaving your substantial net worth without limitations to your college-age son.
Additionally, there may be new estate planning tools available that were not applicable to your original estate situation. If your family has grown as quickly as your portfolio — with new in-laws and grandchildren — it is well worth going over any new options.
Another reason to review your estate planning on a regular basis is the fact that estate tax laws have been constantly changing, which may have a profound effect on the plan you’ve put into place.
You want to make sure the wealth you worked so hard to create and save is passed on in a responsible manner consistent with your current personal directives and passions.
Sponsel CPA Group is here to consult and help you brainstorm solutions for any wealth transfer dilemmas you may have. If we can assist you with achieving success in your business or personal affairs, please call Nick Hopkins at (317) 608-6695 or email [email protected].