WHEN TO REVIEW YOUR ESTATE PLAN?
More Often Than You Think

How do you know when it's time to review your estate? Usually, an estate plan should be reviewed following a major life event. But even if you or your family does not experience a major life event (such as a birth, marriage or death) you should still monitor your estate plan periodically so that it can achieve the future objectives.

The following events should signal a reason to contact your financial advisor and attorney and review your estate plan:

» The 5-Year Rule - If it's been at least five years from your last estate plan tune-up, then it's time for another. Things change. Even if you haven't had a major life event affect you, tax laws change, portfolio values change and your future goals may change. In fact, it may be a good idea to have a financial planning fire drill every other year. Waiting more than five years, however, is too long.

» Family Changes - Births, deaths, marriages, divorces - any of these events in your family - should lead you to reconsider your estate plan. With every birth and marriage in your family, for example, you add a potential beneficiary to your estate. A death obviously has the opposite effect, while a divorce may be the most complicated of all. If your son or daughter divorces, for instance, you may wish to remove the former spouse from your estate plan but retain a place for the divorced couple's children - your grandchildren.

» Health Issues - Long-term medical care is a major expense. If someone in your family requires such care - or if you think someone might require it in the future - you might consider special provisions in your estate plan to cover these expenses.

» Retirement - If you plan to retire within the next five years, effective estate planning is a must. Your retirement may not immediately affect your estate plan, but it will have an eventual impact. And, this impact can be significant. For example, instead of adding to your estate and trying to generate wealth, you will probably begin to withdraw assets for retirement income. This 180-degree turn may cause you to rethink your estate plan.

» Current Trust Provider Closes/Merges - The banking and financial services industry is currently experiencing consolidations and mergers. If such an event affects your current trust provider - and results in reduced or no trust service you should consider examining your estate plan and move your trust to a more stable financial organization.

» Family Business - A business venture presents additional complications because, depending on the marketplace, your business may be constantly evolving. A sole proprietorship may become a partnership that may become a corporation.

» Portfolio Investment Performance - If the total value of your estate has increased or decreased 20% since you last reviewed your estate plan, you should probably review it again.

» Future Philanthropic Motives -If you'd like to leave some or all of your estate to charity, you should begin to structure an estate plan using Charitable Trusts. These estate planning vehicles can also provide you and your estate with several immediate and long-term tax saving benefits.

» Life Insurance Purchase - If you purchase a life insurance policy it may be best to put it in a life insurance trust so it is kept out of your estate.

» Changes in the law - Congress needs to address the federal estate tax sometime this year to avoid the one year repeal of the estate tax in 2010. Other legal changes can have a significant impact on your plan. Keep informed!

» Other events - Other events that should cause you to examine your estate plan include receiving inheritances, changes in employment, funding college education and moves between states. An unplanned estate or one that is left unattended can be costly.