Monthly Update for Administration of Trusts and Asset Management

THE TEN-MINUTE REVIEW

Making time to think about your estate plan probably isn’t high on your to-do list.  But maybe it should be.  Your estate plan may no longer be able to accomplish your goals if financial or family circumstances have changed.  Those possibilities make it a good idea to take some time once a year or so to review your plan.  You might start by asking yourself some simple questions.

HAS THE SIZE OF YOUR ESTATE CHANGED?

Has your net worth changed substantially?  Make a quick estimate.  If the net value of your estate has changed greatly, you may need to make some adjustments.

If your net worth has grown, federal estate tax may be an issue.  The amount you can pass estate-tax-free to your heirs has increased, but the federal estate tax remains a threat for estates in excess of $13 million.  Up-to-date tax planning can reduce potential taxes.

A substantial increase (or decrease) in the size of your estate could also affect the distribution of your assets, particularly if you’ve made specific bequests rather than dividing your estate proportionately.

ARE YOUR CONTINGENCY ARRANGEMENTS UP TO DATE?

Are you comfortable with those you named in your health-care proxy and durable power of attorney?  Are they still willing to serve in those capacities?  You can confirm your choices or identify the need for changes with a quick review.

WILL YOUR ASSETS BE DISTRIBUTED AS YOU WISH?

If there have been deaths, births, divorces, or disabilities in your family, you may want to revise your estate planning documents.  A change may also be in order if you have concerns about a loved one’s ability to handle an inheritance.

You can delay or set conditions on when a beneficiary will gain access to his or her inheritance by creating a trust. By naming an experienced professional as trustee or co-trustee, you can ensure that the trust assets will be professionally managed and your beneficiaries will be provided for according to your instructions.  You can give your trustee as much -- or as little -- fiduciary discretion as you wish to meet your family’s needs.

ARE THE NEEDS OF YOUR MINOR CHILDREN COVERED?

If you have minor children, make sure the guardian you named in your will is still the person you want for the job.  Make sure that person is still willing to serve.  Also, you may want to consider separating financial responsibility from day-to-day care.  Many estate plans name a family member to provide care for minor children and a professional fiduciary to provide financial management until the minors reach maturity.  This can provide more checks and balances on the financial side of the guardianship.

NO CRYSTAL BALL!

None of us have a crystal ball to know when something might occur.  If you have not set up your estate plan, you should, especially if you have minor children, disabled children or adult children who are not mature enough to handle an inheritance outright.

If you need help updating your present plan, we can help.  Our experienced professionals can suggest effective strategies for achieving your planning goals.  Please contact us if you would like to discuss.

WealthTrust Oklahoma is the Oklahoma Trust representative office of National Advisors Trust Company. We are independent and hold a federal charter.  In addition to trust administration services, we offer investment management services through our firm, WTO Advisors

Alyssa Kaiser, CTFA, has over 31 years of experience in the trust, investment, and banking industries and is President of WealthTrust Oklahoma and WTO Advisors.  Alyssa may be contacted at: (405) 241-1600, or by email at Alyssa@WealthTrustOk.com

WealthTrust Oklahoma Copyright 2024 by Alyssa Kaiser

2952 Via Esperanza, Edmond, OK, 73013

(405) 241-1600 (phone), (405) 241-1605 (fax)