Why You Need an Estate Planning Checkup

Good for you, you have a will! How long has it been since you looked at it? Do you even remember where you’ve stored it?

Dig it up now. Take a look at when it was signed. Was it two years ago, five years ago, ten years ago, even more?

Now read it. Was the will signed in a different state? You need to consult with an estate planning lawyer to determine whether your existing will complies with New Jersey law. If it does not, it is not valid.

Is this still the way you want your estate distributed? If you have acquired a larger estate since when you signed your will (yes, even with the latest financial crisis), your estate may be large enough so that your estate might be subject to New Jersey estate taxes. Since the threshold is $675,000, a lot of people who thought they were not subject to any estate taxes should talk to their estate planning lawyer.

If you have minor children, did you name a guardian? Do you still want that person to act as guardian? Is the guardian still willing to take on this responsibility?

Have you become married, divorced, or widowed since you signed your will? If you are married, your spouse is entitled by law to a percentage of your estate, even if the spouse isn’t mentioned. But, do you want your spouse to inherit everything? Then you need to revise your will. If you have become divorced, did you change your will to ensure that your ex-spouse gets only the amount you wish to give him – or do you want to cut him out completely?

Is your power of attorney more than five years old? Although a durable power of attorney does not have an expiration date, as a practical matter, banks and other financial institutions have a reluctance to rely on an old document. This means your agent (the attorney-in-fact) may have difficulty using the powers that you gave her. You might want to re-execute a new durable power-of-attorney and think about whether you want to appoint the same agent.

Likewise, is your health care proxy more than five years old? Does it give your health care agent permission to review your medical records? Do you still want to name the same agent? Do you give your agent instructions in a living will as to your wishes for medical treatment if you are terminal or in a coma? These are all very good reasons to call your estate planning lawyer to re-do your health care proxy and living will.

Your estate plan changes as your life changes. Revisions in the tax laws are also a reason for a change in your estate plan. Don’t think that because you had your estate plan created once that you are done forever. You should have an estate plan check-up every 2-3 years.