If you already have an estate plan, it is important to review and edit it on a regular basis. A well updated estate plan is the best way to save your loved ones time and money after you pass on. A recent article discusses several steps a person can take to improve his or her estate plan.
One way to improve your estate plan is to update your will and/or living trust. These are the key elements to most estate plans, and should be reviewed every three to five years. They should also be reviewed after important family events such as births, deaths, marriage, and divorce.
You may also consider giving gifts during your lifetime. Lifetime gifts can reduce the value of your estate, which translates to a lower federal estate tax liability. If you don’t want to give a lifetime gift, consider being charitable upon your death. Whether during your lifetime or at your death, you can give an unlimited amount of money to qualified charitable organizations free of any sort of gift or estate tax consequences.
Finally, it is important to ensure that you have selected an executor and power of attorney. An executor must be someone you implicitly trust. A good selection is someone who you anticipate living longer than you. You may also select a financial institution. A power of attorney should be someone you trust to act as your agent in financial and business matters, should you become incapacitated.
