Dramatic Changes in the Law May Affect You & Your Estate Plan

How old is your estate plan? When did you last check the oil? (This refers to another article on this site.).

Does your plan take into consideration the following significant changes in the law?

1. The Tax Relief Act, which became effective in 2002, and which increased the federal estate tax exemption amount, and which creates opportunities for greatly simplifying trust provisions for some clients; This law also creates unwanted non-tax consequences for other clients.

2. The 2004 de-coupling of the Maryland estate tax, resulting in a reduced exemption amount, with the result that the language in your documents could possibly result in a surprise tax upon the death of the first spouse; and

3. The new privacy laws contained in the Regulations under the Health Insurance Portability and Accountability Act (HIPAA), which may limit the effectiveness of your Health Care Powers of Attorney and other aspects of your estate plan.

Any proper estate plan must be kept current in order to ensure that the client’s objectives can be fulfilled. It is important to review your plan at least every two years. However, the changes referenced above have made it even more critical that clients keep their plans up to date.

If you would like to make sure that your estate plan currently meets your goals and objectives, we encourage you to review your Estate Plan. An estate plan review should include a thorough review of your documents, your financial situation, and a personal consultation.

I truly believe that there are few things more important than taking the necessary steps to ensure that you and your loved ones are protected in the event of disability or at death, and that your wishes are fulfilled. This necessarily requires periodic review and updating of even the most thorough plan. If you want the peace of mind that comes with knowing your planning is up to date, I would urge you keep your estate plan up to date.

This information was prepared by Lena Barnett & Associates, LLC and is intended only to provide general information. It is neither offered nor intended for use as legal advice, nor is it a substitute for a consultation with an attorney.

© 2006 Lena Barnett & Associates, L.L.C. All Rights Reserved

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