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What
Use Is There In Reviewing My Estate Planning Documents and Strategies?
In Texas it is said that no one is safe when the Legislature is in session. The
same can be said as to all of us, not merely Texans. However, all news from
the government regarding estate planning matters is not bad news.
Legislation, regulations, and decisions providing significant estate planning
benefits have occurred over the last 20 years with almost the same frequency
as the less pleasant screw tightening ones. For most of us the advent of the
unlimited marital deduction is of considerably greater benefit than the
Generation Skipping Transfer Tax is a hardship.
Frequent changes in the law, particularly with regards to taxation of estates
require review, if not changes, every few years. Other considerations
additionally give rise to a need for review of your documents:
- Few of my clients are interested in keeping all the details and
ramifications of their documents in mind all the time.
- Periodic review of the documents with your attorney serves to refresh your
memory of what you have and to reflect upon what changes may be in order
because of changed circumstances or wishes.
- The practice of law with regards to estate planning documents is
constantly evolving.
- New solutions to old problems are constantly generated as we look at those
old problems from new view points. What was not imagined several years ago
as being a possible is first cautiously and then routinely employed. Similarly,
acceptable practices are discovered to have inherent flaws that should be
corrected. For example, in 1986 the "new" Generation Skipping Transfer Tax
became effective. For the first several years advanced estate planning
workshops and seminars for lawyers focused on who had to pay the tax and
how it was to be calculated. Real solutions to the question of how do I draft
documents to deal with the tax were not thick on the ground. It was only after
several years and lots of floundering around that "experts" and practitioners
really started to come to grips with some effective strategies. Newer solutions
to dealing with the "tax that was designed to not be paid" will certainly be
forthcoming.
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