Money Matters: The 'final' estate-planning step - WMUR Manchester

Hello Everyone. I hope you’re doing well and enjoying the winter. Well that’s what we get in the Northeast. This week’s subject is the final estate planning step. Your estate planning is done. But is it a lot of people have done their estate planning. They put it away and they never look at it again. A periodic review is an important ongoing step to your planning. So why is a review so important? Well maybe your plan was done years ago and there have been some significant changes in your life. Maybe you got married, maybe you got divorced. Perhaps you had a child or perhaps you are on better terms with Children who are once X. Strange where you had written them out of the will. In addition to family dynamics, tax and estate laws can change over time requiring further updates to your documents. Change is a constant thing. What are some of the key indicators to take a look at? Well if the value of your estate has changed significantly, you may need to update your estate plan. Examples of this include receiving a large inheritance, winning a large sum of money, lucky you. If it happens or selling a business, If you or your spouse changed jobs, you may need to make revisions in your estate plan, especially if you moved in from another state or you’re moving to another state. Changes to your income level or income needs. Could trigger a need or if you are retired no longer working. That may trigger a look at it situations such as your or your Children or grandchildren, marital status has changed. A child or grandchild has been born or adopted. Your spouse, child or grandchild has died. Uh, You are a close family member has become ill or incapacitated. Other individuals like your parents have become dependent on you. Those are reasons for taking a look at your estate planning. Perhaps you have formed, purchased or sold the business. Did you liquidate or reorganize your business? Maybe you executed a buy sell agreement with your partner, changes made to employee benefits, pension plans or deferred compensation plans could also necessitate a state planning changes. Making significant financial transactions could spark changes in your plan as well. These could involve gifts, borrowing or lending money, purchasing, leasing or selling assets or investments. Now, residential property is another area to keep an eye on. If you change where you live, this could affect your planning. As we mentioned just a few seconds ago, If you bought a vacation home or other property in another state, you want to review the implications there as well. If the designated trustee executor or guardian dies or changes his or her mind about serving when you go, you need to revise the parts of your estate plan affected by these changes. Making changes in your insurance coverage may change your estate planning needs or may make changes necessary. Your estate planning advisor should be aware of any changes you make to life insurance, health insurance, disability, medical liability insurance or beneficiary designations. For larger states, you could review your plan annually or when the aforementioned events happen. Changes in tax law happen frequently, and an annual review will help you stay on top of these two. The best of results for you. A similar suggestion applies to smaller states, although you may not want to take a look at it every year, but certainly once five years has passed, pull out your estate planning documents and take care of them. None of us has a crystal ball. We can’t think of all the conditions that should prompt us to review or revise estate plans. This is why checking in with a professional every five years or sooner if you have more complicated things is a good way to go.

Advice offered by Marc Hebert, president of The Harbor Group Inc., a certified financial planner. If you have any questions about finance or if you’d like to suggest a future topic, email webstaff@wmur.com.Your estate planning is done, but is it? A periodic review is an important ongoing step to your planning.Why is a review so important? Maybe your plan was done years ago and there have been some significant changes in your life. Maybe you got married. Maybe you got divorced. Perhaps you had a child or perhaps you are on better terms with children you were once estranged with. In addition to family dynamics, tax and estate laws can change over time, requiring further updates to your documents. Your once perfect estate plan may now not be up to the task. Change is a constant thing. What are some key indicators a review is in order? Here are a few suggestions: If the value of your estate has changed significantly, you may need to update your estate plan. Examples of this include receiving an inheritance, winning a large sum of money (lucky you!), or selling a business. If you or your spouse changed jobs, you may need to make revisions in your estate plan. Changes to your income level or income needs. Or, if you are retiring, no longer working may change your estate planning. Situations such as: (1) your (or your children’s or grandchildren’s) marital status has changed, (2) a child (or grandchild) has been born or adopted, (3) your spouse, child, or grandchild has died, (4) you or a close family member has become ill or incapacitated, or (5) other individuals (e.g., your parents) have become dependent on you. Perhaps you have formed, purchased, or sold a business. Did you liquidate or reorganize your business? Maybe you executed a buy-sell agreement with your partner. Changes made to employee benefits, pension plans, or deferred compensation plans could also necessitate estate planning changes. Making significant financial transactions could spark changes to your plan. These could involve substantial gifts, borrowing or lending money, or purchasing, leasing, or selling assets or investments. Residential property is another area to keep an eye on. If you changed where you live, this could affect your planning. If you bought a vacation home or other property in another state, you will want to review the implications. Perhaps you no longer solely own your home. If a designated trustee, executor, or guardian dies or changes his or her mind about serving, you need to revise the parts of your estate plan affected (e.g., the trust agreement and your will) to replace that individual. Making changes in your insurance coverage may change your estate planning needs or may make changes necessary. Your estate planning advisor should be aware of any changes you make to life insurance, health insurance, disability insurance, medical insurance, liability insurance, or beneficiary designations. Your adviser should also be aware of any lawsuits. For larger estates, you should review your plan annually or when the aforementioned events happen. Changes in tax laws happen frequently and an annual review will help you stay on top of these to get the best results. A similar suggestion applies to smaller estates. You might not be as affected by changes in tax laws but your personal situation is bound to change and a review, at least every few years, will help you keep your plan current.None of us has a crystal ball. We can’t think of all the conditions that should prompt us to review and revise our estate plans. This is why checking in with a professional can be a good idea. Have your feelings about charity changed? Has your child finally become financially responsible? Has your spouse’s health been declining? Are your children through college now? Giving these topics a little thought from time to time can go a long way.

Your estate planning is done, but is it? A periodic review is an important ongoing step to your planning.

Why is a review so important? Maybe your plan was done years ago and there have been some significant changes in your life. Maybe you got married. Maybe you got divorced. Perhaps you had a child or perhaps you are on better terms with children you were once estranged with. In addition to family dynamics, tax and estate laws can change over time, requiring further updates to your documents. Your once perfect estate plan may now not be up to the task.

Change is a constant thing. What are some key indicators a review is in order? Here are a few suggestions:

If the value of your estate has changed significantly, you may need to update your estate plan. Examples of this include receiving an inheritance, winning a large sum of money (lucky you!), or selling a business. If you or your spouse changed jobs, you may need to make revisions in your estate plan.

Changes to your income level or income needs. Or, if you are retiring, no longer working may change your estate planning. Situations such as: (1) your (or your children’s or grandchildren’s) marital status has changed, (2) a child (or grandchild) has been born or adopted, (3) your spouse, child, or grandchild has died, (4) you or a close family member has become ill or incapacitated, or (5) other individuals (e.g., your parents) have become dependent on you. Perhaps you have formed, purchased, or sold a business. Did you liquidate or reorganize your business? Maybe you executed a buy-sell agreement with your partner. Changes made to employee benefits, pension plans, or deferred compensation plans could also necessitate estate planning changes. Making significant financial transactions could spark changes to your plan. These could involve substantial gifts, borrowing or lending money, or purchasing, leasing, or selling assets or investments. Residential property is another area to keep an eye on. If you changed where you live, this could affect your planning. If you bought a vacation home or other property in another state, you will want to review the implications. Perhaps you no longer solely own your home. If a designated trustee, executor, or guardian dies or changes his or her mind about serving, you need to revise the parts of your estate plan affected (e.g., the trust agreement and your will) to replace that individual. Making changes in your insurance coverage may change your estate planning needs or may make changes necessary. Your estate planning advisor should be aware of any changes you make to life insurance, health insurance, disability insurance, medical insurance, liability insurance, or beneficiary designations. Your adviser should also be aware of any lawsuits. For larger estates, you should review your plan annually or when the aforementioned events happen. Changes in tax laws happen frequently and an annual review will help you stay on top of these to get the best results. A similar suggestion applies to smaller estates. You might not be as affected by changes in tax laws but your personal situation is bound to change and a review, at least every few years, will help you keep your plan current.

None of us has a crystal ball. We can’t think of all the conditions that should prompt us to review and revise our estate plans. This is why checking in with a professional can be a good idea. Have your feelings about charity changed? Has your child finally become financially responsible? Has your spouse’s health been declining? Are your children through college now? Giving these topics a little thought from time to time can go a long way.