You likely have read that the entertainer, Prince, made a $250 million mistake by not having a will or estate plan in place. The future inheritance process could cost his heirs tens of millions of dollars in legal fees, and state and federal estate taxes.
Each tax season when meeting with new clients we ask if they have a will or estate plan in place. You may be surprised that Prince is not alone; many of these new clients acknowledge that they do not have a will.
While most of the above would likely say that they meant to implement an estate plan, many of these good intentions may have been cast aside as many people find addressing death and its financial consequences so daunting that they put it off.
For those who do affirm that they have an estate plan, you may also be surprised that many of these plans are several years old. Life evolves. People have children or grandchildren; relationships change; marriages, separations, and divorces occur; people relocate to another state; medical history changes; employment changes and the stock market affect financial situations; currently named executors or trustees may no longer be appropriate; etc. Thus, it is very important to periodically review your estate plan to make sure it meets your current wishes and that your intentions are meticulously documented.
If you do not have an estate plan in place or your plan is not current, seek out an experienced estate planning attorney to establish one. Most people think that a will is the only document needed, but you will likely find that an experienced estate planning attorney will also discuss trusts, living wills, medical directives, and durable power of attorneys.
If you want to discuss your business or personal tax planning and tax preparation concerns with an experienced tax professional, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.