For nearly 25 years, Vogel Consulting has offered wealth management solutions to clients across the United States. Vogel Consulting leverages unique service platforms to offer value in the areas of business accounting, investment consulting, and estate planning and monitoring.
Once drafted, an estate plan should be monitored and reviewed to keep it up to date with changes in either the client’s financial position or the environment, both of which can affect the outcome of the plan.
When reviewing an estate plan, considerations include changes in the number of beneficiaries, the capacity of the beneficiaries to handle an inheritance, and changes in values of the client’s assets. Other important considerations involve changes in the capacity of designated trustees to carry out their duties and new estate tax laws that will affect the estate’s overall tax liability.
Here is an example to put things into perspective: Juliet created an estate plan with her financial planner in 2015, in which she bequeathed 50 percent of her estate to her children and the rest to her foundation. Over the course of her life, her personal assets will either increase or decrease in value. Either shift will affect the outcome of final disbursements. She will want to review the plan periodically to balance the disbursements to beneficiaries.
What if a beneficiary passes on or the foundation loses a major donor, and hence needs more funding? Both of these will prompt a review of the estate plan to determine if it will still create the desired outcome, which is to ensure the financial security of both her children and the foundation.
Overall, there are several occurrences that can alter Juliet’s financial position or affect the capacity of her beneficiaries. This is why a periodic review of her estate plan is necessary.
