We have mentioned before on our Scottsdale probate law blog that revisiting one?s estate plan is an important part of the estate planning process. A couple?s assets could significantly increase over time. Wills and trusts should reflect these changes in a couple?s financial situation.
However, it is also important to revisit estate plans in order to make sure that one?s wishes will still be carried out as planned and intended, even after estate tax laws have changed. Failing to revisit one?s estate plan and failing to make sure that the language in one?s plan clearly addresses what an individual wants to happen to his or her money could be detrimental.
A recent probate court battle shows just how damaging these types of estate planning mistakes can be.
In 2008, an elderly couple drew up their final estate plan. To minimize estate taxes, the couple created a trust. They were very wealthy and wanted to make sure that both of their children would receive the maximum amount of money they could based on the current federal estate tax exclusion.
At the time when the trust was created, the exclusion was $2 million per person. This would have meant that both children would receive $2 million tax-free after the death of one of their parents. The couple wanted all of the remaining assets to go toward another trust for the surviving spouse.
When the couple drew up their plan, they used a formula clause instead of using very specific language to address a variety of circumstances, such as changes in federal estate tax laws. Using the formula clause was a mistake in this couple?s case.
We will continue this discussion later this week on our probate law blog and focus on the consequences of using formula clauses in estate plans.
Source: Reuters, ?Dramatic estate tax battle delivers fresh lessons,? July 31, 2012
Source: http://www.phoenixestatesandprobatelaw.com/2012/08/dispute-highlights-importance-of-revisiting-estate-plans-part-1.shtml
white sox chuck colson ufc 145 results orrin hatch marlon byrd charles colson humber
Source: http://stoptbpartners.org/1467/dispute-highlights-importance-of-revisiting-estate-plans-part-1/
brown recluse brown recluse front door alyssa bustamante protandim weightless ellen degeneres jcpenney
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন