Although there's no hard-and-fast rule about when you should review your estate plan, the following suggestions may be of some help:
• You should review your estate plan immediately after a major life event
• You'll probably want to do a quick review each year because changes in the economy and in the tax code often occur on a yearly basis
• You'll want to do a more thorough review every five years
Reviewing your estate plan will not only give you peace of mind, but will also alert you to any other changes that need to be addressed.
There will be times when you'll need to make changes to your plan to ensure that it still meets all of your goals. For example, an executor, trustee, or guardian may change his or her mind about serving in that capacity, and you'll need to name someone else.
Other reasons you should do a periodic review include:
• There has been a change in your marital status (many states have laws that revoke part or all of your will if you marry or get divorced) or that of your children or grandchildren
• There has been an addition to your family through birth, adoption, or marriage (stepchildren)
• Your spouse or a family member has died, has become ill, or is incapacitated
• Your spouse, your parents, or other family member has become dependent on you
• There has been a substantial change in the value of your assets or in your plans for their use
• You have received a sizable inheritance or gift
• Your income level or requirements have changed
• You are retiring
• You have made a change in your estate plan (e.g., you created a trust or executed a codicil to your will)
While trusts offer numerous advantages, they incur up-front costs and often have ongoing administrative fees. The use of trusts involves a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional and your legal and tax advisers before implementing such strategies.
Michael J. Brown, Senior VP / Branch Manager, Janney Montgomery Scott, 401 New Road, Suite 200, Linwood, NJ 08221, 609-601-2512, email@example.com.
Janney Montgomery Scott LLC Financial Advisors are available to discuss the suitability and risks involved with various products and strategies presented. We will be happy to provide a prospectus, when available, and other information upon request. Please note that the information provided includes reference to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to you to assist in understanding the issues discussed. Neither Janney Montgomery Scott LLC nor its Financial Advisors (in their capacity as Financial Advisors) give tax, legal, or accounting advice. We would urge you to consult with your own attorney and/or accountant regarding the application of the information contained in this letter to the facts and circumstances of your particular situation. Janney Montgomery Scott LLC, is a full-service investment firm that is a member of the NYSE, the FINRA and SIPC.