Importance of reviewing estate plans now

There is considerable uncertainty as to the actions the current Congress will take regarding wealth transfer taxation.  Accordingly, many individuals are taking a “wait-and-see” approach.

This strategy, however, may be a big mistake as explained in Deborah L. Jacobs, Study Estate Plans Before Laws Shift, NY Times, Feb. 26, 2009:

“With people having a lot less money than they used to, you really need to look at your documents and see if they do what you intended,” said Joshua S. Rubenstein, a lawyer with Katten Muchin Rosenman in New York. A review will allow you to use tax-planning tools that Congress may soon curtail or eliminate.

Here is a list of the techniques which should be re-checked:

• Formula clauses in wills
• Bypass or credit-shelter trusts
• Grantor retained annuity trusts
• Family limited partnerships
• Beneficiary designation forms

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.