Some situations warrant a re-examination of your estate plan. How did your life change in 2022?
If you married or had children, you will naturally want to ensure they are included in your will, trust and life insurance policy. Or, if you divorced you likely do not want your ex to inherit your estate or serve in a position of trust.
Still, there are some life changes you may not have thought of that also warrant a review of your estate plan in 2023.
Will the estate tax apply?
For most people, the federal estate tax is not something they have to worry about. It only applies to estates valuing more than $12.93 million in 2023 for individuals.
Still, if you are hovering near the estate tax exemption and fall just short, you may want to re-examine the value of your estate especially if you got a raise or substantial windfall in 2022 that added to the value of your estate.
These life circumstances could push the value of your estate over the estate tax exemption, meaning the estate tax will now apply. If so, you will want to take steps in your estate plan to mitigate the estate tax.
Who is your executor?
Did you select a loved one to serve as executor of your estate or serve as power of attorney? If so, you might want to review that designation in 2023. Some issues you may want to look for include:
- Is that person still alive?
- Is that person still capable and willing to fulfill that role?
- Have your opinions of that person changed?
If your selection for executor or power of attorney is no longer living, cannot fulfill that role or you no longer trust them in those positions of power, you will want to select someone else to serve in these roles.
Review your estate plan regularly
A regular review of your estate plan is just a good idea. It can help you feel comfortable that the decisions you made for your future and the future of your loved ones still reflect your wishes and make sense. Estate planning is an ongoing endeavor, not something you simply do once and then set on the backburner untouched forevermore.