People also tend to matters that have been placed on the back burner when the calendar turns over, and this can apply to estate plan revisions.
When you put your initial estate plan in place, it is going to be constructed based on the way that things were at that time. Your own life situation is going to be a big part of it, and there are also laws that are applicable to everyone that could enter into the equation.
Estate planning is not something that is necessarily going to be completed in one sitting. It is an ongoing process, and your estate plan will need revisions when certain things take place within your life
Changes in marital status would result in the need for estate plan revisions, and additions and subtractions to the family could also be a factor. Plus, your intentions can change with regard to the way that you want your assets to be distributed after you pass away.
In addition to the circumstances that are unique to you and your family, changes that impact everyone throughout our society can render your existing estate plan obsolete.
For example, there can be changes to the estate tax parameters. At the present time, the estate tax exclusion is $5.43 million. This is the amount that you can transfer before the estate tax would kick in. The top rate of the tax is 40 percent.
If your estate plan was created using these current parameters, and you are not exposed at the present time, your estate plan would not provide estate tax efficiency. However, what if this exclusion was to be reduced? The White House has proposed reductions to the exclusion on multiple occasions.
In addition to the above, your own financial situation could improve considerably, and the value of your estate could enter taxable territory.
There is also the matter of the Connecticut state estate tax. In Connecticut, the state-level estate tax exclusion is just $2 million. As a result, you could be exposed to the state tax even if you are exempt from the federal tax.
These parameters are also subject to change via legislative mandate. You should always be aware of the current state of affairs so that you are prepared to make estate plan revisions if and when they become necessary.
Schedule a Free Consultation
If you would like to review your estate plan with the benefit of legal counsel, our firm can help. We offer free consultations, and we would be glad to examine your situation and make the appropriate recommendations.
To set up an appointment, send us a message through this page: Hartford CT Estate Planning Attorneys.