Estate Plan Review: When Do I Need One?

November 30, 2016

As estate planningPlanning in advance of disability, incapacity, or death to make sure that key life issues have been addressed while the person is still of sound mind and able to understand and sign key documents such as Power of Attorneys, Power of Attorneys for Health Care, Wills, and Trusts to form a strategy and provide for the administration and disposition of his or her assets upon death or upon incapacity. lawyers, we are regularly asked “When do I need to do an estate plan review?” When we draft an estate plan for a client, we attempt to draft with an eye towards the future so that frequent updates are not necessary. However, when a client experiences life changing events, or after a significant passage of time, we actively recommend a review of your existing estate plan.

Regardless of whether it is a trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. or a last will and testamentSee Will. based plan, a proper estate plan should help in many ways:

• protect you and your family in the event of illness, disability or death.
• help eliminate or reduce to the fullest extent potential family disputes.
• help save money and help your heirs save time.
• assist you in avoiding probateThe court process proving the validity of a Will and conducting the orderly Inventory, Accounting, and Administration of a decedent’s assets under a Will or under Intestacy laws if there is no Will. The probate process in Wisconsin typically takes between six to twelve months in Wisconsin and can take longer in some cases. Probate can be avoided by proper Estate Planning and through the use of beneficiary designations, Transfer on Death Deeds, Marital Property Agreements and Trusts., if appropriate.

When is the Right Time for an Estate Plan Review?

At Wokwicz Law Offices, we generally recommend a review of your estate plan if your circumstances meet any of the following conditions:

• a significant amount of time has passed since the estate plan was created;
• significant life changes have transpired; significant life changes may include the deaths of loved ones or other items listed below.
• you have moved to Wisconsin.

Changes to Wisconsin Tax and Estate Planning Law

Due to several tax law changes for trusts and estates, older trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. based plans should be reviewed and updated where necessary to comply with the newer tax laws.

Many older trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. plans are based on outdated tax law strategies that may no longer be necessary, which makes your old estate plan more complex than is currently required under the newer tax laws. Often, an older out of date trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. based plan can actually be simplified due to changes in the estate taxThe Federal tax that is imposed on transfer of assets at death, especially to non-spouses. The current Federal Estate Tax, simply speaking, is for assets in excess of 5.34 million dollars for the year 2014. There is not currently an estate tax in Wisconsin, but approximately 20 other states still have some form of estate tax. laws.

What Items Should You Look For in Determining if a Review is Necessary?

If you have an existing Will, Trust, or Power of Attorney in place, have they been reviewed in the last five years?

If not, you may want to consider a review. Newer Power of AttorneySee Power of Attorney for Health Care, Financial Power of Attorney, and Durable Power of Attorney. and TrustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. statutes in Wisconsin can allow us to include a lot more flexibility and options than the older Power of AttorneySee Power of Attorney for Health Care, Financial Power of Attorney, and Durable Power of Attorney. and TrustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. statutes. Sitting down to discuss if the newer options under Wisconsin law are right for you, could very well be worth the time and effort.

If you have an existing trust, does it contain a “spend thrift” creditor protection clause to help protect from your beneficiaries’ creditors or bankruptcy?

If not, it should be updated to include provisions to protect your beneficiaries inheritance from their creditors.

Have you remarried, divorced or are you planning to remarry?

If so, it is time to have your estate plan reviewed. Wisconsin statutes may change your written estate plan for you, if you have remarried or divorced, by “operation of law” without your knowledge and without actually changing the documents.

Additional Questions for Considering an Estate Plan Review

If you answer “Yes” to any of the following questions, then we would typically recommend that you review your estate plan:

1. If you have a TrustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. plan, is it funded correctly to avoid probateThe court process proving the validity of a Will and conducting the orderly Inventory, Accounting, and Administration of a decedent’s assets under a Will or under Intestacy laws if there is no Will. The probate process in Wisconsin typically takes between six to twelve months in Wisconsin and can take longer in some cases. Probate can be avoided by proper Estate Planning and through the use of beneficiary designations, Transfer on Death Deeds, Marital Property Agreements and Trusts.?
2. If you are married do you have a marital property agreementA document created by married persons in advance of marriage (prenuptial agreement) or following marriage (post-nuptial agreement) to agree with or alter the pre-set Wisconsin Marital Property laws. A Marital Property agreement can also be used to direct that property, upon death of one or both spouses, shall be distributed to a trust or person to avoid probate. In Wisconsin, a Marital Property Agreement can be used to help fund a Revocable Trust at the death of a spouse of both spouses to avoid probate and can be referred to as a Non-Probate Marital Property Agreement. that helps to avoid probateThe court process proving the validity of a Will and conducting the orderly Inventory, Accounting, and Administration of a decedent’s assets under a Will or under Intestacy laws if there is no Will. The probate process in Wisconsin typically takes between six to twelve months in Wisconsin and can take longer in some cases. Probate can be avoided by proper Estate Planning and through the use of beneficiary designations, Transfer on Death Deeds, Marital Property Agreements and Trusts. and fund the trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries.?
3. Have your assets changed significantly since you set up your TrustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. plan?
4. Have you purchased a new house or a second house in Wisconsin or in another state?
5. Are the persons you appointed to oversee your health care under your Power of Attorney for Health CareA document that authorizes a person, called an agent, to make health care decisions in the event that the person creating the document becomes incapacitated and can no longer make his or her health care decisions. A power of attorney for health care should also set-forth desires on the use or non-use of artificial equipment and feeding tubes in the event that the creator becomes incapacitated. still the persons that you would choose to undertake your health care decisions today if you are not able?
6. Are the persons you appointed to oversee your financial decisions under your Durable Power of AttorneyA Financial Power of Attorney that does not terminate if the person making the power of attorney becomes incapacitated. still the persons that you would choose to be in charge of your financial decisions today?
7. Do you have young children who are now grown up and could a child or children now be placed in charge of your trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries., health care of financial decisions?
8. If you have minor children, are you happy with the persons you named in your willA written document that sets forth and names the personal representative who will be in charge of overseeing the probate process and names the specific bequest and residual beneficiaries of property who are to receive and inherit assets and property through probate. A Will does not avoid probate, and must be properly drafted and executed to be legal. A Will can also avoid the use of a surety bond in many instances and can help utilize an “informal” Wisconsin probate process if it has the proper clauses and attestation clause. to be guardians?
9. If you have children who have grown up, is there an unnecessary trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. fund set up for your child or children who no longer need it?
10. Have trustees, personal representatives or agents under your power of attorneySee Power of Attorney for Health Care, Financial Power of Attorney, and Durable Power of Attorney., trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries., willA written document that sets forth and names the personal representative who will be in charge of overseeing the probate process and names the specific bequest and residual beneficiaries of property who are to receive and inherit assets and property through probate. A Will does not avoid probate, and must be properly drafted and executed to be legal. A Will can also avoid the use of a surety bond in many instances and can help utilize an “informal” Wisconsin probate process if it has the proper clauses and attestation clause. or other documents passed away or become too old to handle your affairs?
11. Have family disputes arisen or have family members or friends moved away who you previously thought would oversee your affairs?
12. Is it time to name new trustees, power of attorneySee Power of Attorney for Health Care, Financial Power of Attorney, and Durable Power of Attorney., personal representatives or agents?
13. When you look at your estate plan do you see items that you know are no longer what you want or items that you know need to be updated?
14. Has a child or other family member become disabled who may require a special needs trustA trust that is set up to provide for "extras" that will not be provided for by government or other programs for a mentally or physically disabled person. This type of trust is for the “special needs” of the disabled person beyond the persons basic care needs of food and shelter. In Wisconsin a Special Needs Trust can be set up as part of a Revocable Trust or in a Will during the estate planning process. A special needs trust can also be established by certain eligible individuals or if necessary by a court at the court’s discretion. If any of your beneficiaries are disabled, it is important to let the attorney know during the estate planning process.?
15. Is it time to protect assets from a nursing home since a typical trustThe arrangement creating the legal ownership of assets by a trustee for the benefit of the Settlor and/or other beneficiaries. plan such as a revocable trustA trust created during lifetime that can be terminated, amended, or modified by the person creating it. A Revocable Trust is often used in Wisconsin to avoid probate and provide for the orderly and proper distribution of assets upon death of its creator and to provide for management of assets and property if the creator of the trust becomes incapacitated. estate plan willA written document that sets forth and names the personal representative who will be in charge of overseeing the probate process and names the specific bequest and residual beneficiaries of property who are to receive and inherit assets and property through probate. A Will does not avoid probate, and must be properly drafted and executed to be legal. A Will can also avoid the use of a surety bond in many instances and can help utilize an “informal” Wisconsin probate process if it has the proper clauses and attestation clause. not protect assets from a nursing home?

(We have previously discussed additional considerations.)

Estate Plan Review Lawyers

At Wokwicz Law Offices LLC, we have represented generations of families since 1958. We know the current estate planningPlanning in advance of disability, incapacity, or death to make sure that key life issues have been addressed while the person is still of sound mind and able to understand and sign key documents such as Power of Attorneys, Power of Attorneys for Health Care, Wills, and Trusts to form a strategy and provide for the administration and disposition of his or her assets upon death or upon incapacity. and probateThe court process proving the validity of a Will and conducting the orderly Inventory, Accounting, and Administration of a decedent’s assets under a Will or under Intestacy laws if there is no Will. The probate process in Wisconsin typically takes between six to twelve months in Wisconsin and can take longer in some cases. Probate can be avoided by proper Estate Planning and through the use of beneficiary designations, Transfer on Death Deeds, Marital Property Agreements and Trusts. laws and the past laws. We have created and reviewed thousands of estate plans over the years.

Our lawyers can quickly and efficiently assess and identify estate planningPlanning in advance of disability, incapacity, or death to make sure that key life issues have been addressed while the person is still of sound mind and able to understand and sign key documents such as Power of Attorneys, Power of Attorneys for Health Care, Wills, and Trusts to form a strategy and provide for the administration and disposition of his or her assets upon death or upon incapacity. items that may need to be updated, changed or discussed further. We willA written document that sets forth and names the personal representative who will be in charge of overseeing the probate process and names the specific bequest and residual beneficiaries of property who are to receive and inherit assets and property through probate. A Will does not avoid probate, and must be properly drafted and executed to be legal. A Will can also avoid the use of a surety bond in many instances and can help utilize an “informal” Wisconsin probate process if it has the proper clauses and attestation clause. honestly and with integrity let you know if you need an estate plan review, or if your plan is fine “as is”.

We always put your interest first when creating, drafting, reviewing or revising an estate plan. That is why we have been around the Kenosha area for so long, with thousands of happy and satisfied estate planningPlanning in advance of disability, incapacity, or death to make sure that key life issues have been addressed while the person is still of sound mind and able to understand and sign key documents such as Power of Attorneys, Power of Attorneys for Health Care, Wills, and Trusts to form a strategy and provide for the administration and disposition of his or her assets upon death or upon incapacity. clients. Feel free to call us to see if we can be of service to you and your family.