Chayet & Danzo, LLC Chayet & Danzo, LLC www.Coloradoelderlaw.com
Call for a Free Initial Consultation
Direct 303-872-5980
Toll-Free 888-472-1088
Email Us
Compassion, talent and dedication: guiding colorado families and Their Trusted Advisors During Times of Need

Updating an estate plan: when is it time?

Life doesn't stand still, either abstractly or concerning estate matters.

The rule of thumb has long been that changes in your family structure trigger the need to review your estate plan to ensure that property will still be distributed according to your wishes. Such changes include death, divorce, remarriage or the birth of a child.

With recent changes in federal tax law, however, does it also make sense to review your plan even without major life events such these?

Depending on your circumstances, the answer may very well be yes.

As we discussed in a recent post on estate taxes, due to recent federal legislation fewer estates will have to pay federal estate taxes. For the estate of those who die between 2018 and 2025, the gift tax exemption will double from $5.49 million to $11.2 million - which for couples, comes to more than $22 million.

As a result, during those years, most people won't have to worry about estate taxes. But it may still be an open question whether a trust that you may have set up to avoid those taxes is still needed. This applies to trusts such as irrevocable trusts or trusts with generation-skipping features.

For example, suppose the main reason your set up a trust was because of the old exemption amount for the estate tax. If that is the case, perhaps changes are in order in your plan.

Moreover, you don't have to be a high-asset family to benefit from reviewing your plan for possible updates such as changes in beneficiaries. If you changed jobs, for instance, you may need to make sure your intended beneficiaries are listed on the 401(k) from your old job.

In short, significant life events and major tax changes are prompts to review your estate plan. To accomplish your goals, such plans must never be static, but rather always able to respond to time and change.

No Comments

Leave a comment
Comment Information

Watch Our Firm Video

We are the premier Elder Law firm in the Colorado region. We set ourselves apart from other law firms in the area with our talent, dedication, compassion and ability of our attorneys to handle any case in Elder Law. We serve Colorado families with experience and dignity in your time of need.

View More Videos

Denver Office
650 S.Cherry St., Suite 710
Denver, CO 80246

Toll Free: 1-888-472-1088
Phone: 303-872-5980
Fax: 303-355-8501
Denver Law Office Map

Edwards Office
105 Edwards Village Blvd.
#D-201
Edwards, CO 81632

Toll Free: 888-472-1088
Toll Free: 1-888-472-1088
Fax: 303-355-8501
Edwards Law Office Map

Aspen Office
600 East Hopkins Avenue
Suite 301
Aspen, CO 81611

Toll Free: 888-472-1088
Toll Free: 1-888-472-1088
Fax: 303-355-8501
Aspen Law Office Map

  • Rated by Super Lawyers Macro Chayet SuperLawyers.com
  • Rated by Super Lawyers Frank J. Danzo, III  SuperLawyers.com
  • Member National Academy of Elder Law Attorneys, Inc. TM
  • Avvo Rating 10.0 Superb Top Attorney Elder Law
  • 2015 Five Star Professional Wealth Manager Multi-Year Winner
  • Our new 2015 Medicaid Book: how to protect your Family's Assets from devastating nursing home costs
  • Proud Sponsor 2015-Denver Colorado Senior Law Day
  • Peer Review Rated For Ethical standards & Legal Ability TM Martindale Hubbell
  • Haystack