Do Your Friends and Family Have Proper Estate Planning in Place?

I was talking with my parents this weekend about estate planning.  We got around to the fact that many people are putting off estate planning due to misperceptions about an uncertain economy and the effect that has on the need for estate planning.

My parents have had their planning complete for some time now and I was curious about whether their friends have been as diligent.  As it turns out, they'd actually discussed the matter with a close group of friends.  The group is all 55+ with a high average level of education.  Many had, prior to retirement, been government employees at some point during their careers.  The level of personal assets/income in the group varies widely.

As you've read other places in this blog, elsewhere around the Internet, and in many/varied periodicals - a majority of Americans do not have a meaningful estate plan in place.  So, what do you think?  What were the results of my parents' informal poll of friends?  50% or less having this critical part of their lives properly taken care of?  That's what I thought.

I was pleasantly surprised to learn that every member of the group has some sort of planning in place.  Outstanding!

Now, the next important questions are:  1.)  When was that planning last reviewed? and 2.)  Does the planning still reflect their family situation and wishes?  My guess is that a significant portion of this group hasn't had a review of their plan since before the year 2000 (that is to say, no review since before EGTRRA took effect).  Almost certainly, they've not reviewed their plan in light of this year's estate tax repeal, the attendant tax basis/capital gains tax changes, and what now looks like a fair likelihood of a shrinking estate tax exclusion starting next year.

To those of you have a plan in place - bravo!  You have put yourselves head and shoulders above most of your contemporaries.  The responsibility to yourself and your family does not, however, end there.  If your estate planning attorney has not been in touch with you regarding review of your plan - contact him or her.  If you do not have a relationship with an estate planning attorney you trust, and would still like a review, contact us today.