Just as your car needs an oil change every 3000 miles, your estate plan also needs a periodic check-up. The documents should be reviewed approximately every three to five years to make sure they are up-to-date. Below are some quick and easy steps to make sure your estate plan is in order:

1. Review for changes in personal circumstances. Have you gotten married or divorced, had a child, or moved to Illinois from another state? These are all reasons to review your wills and/or trusts to make sure that these changes are accounted for. You'll also want to confirm that the people that you named as executors, trustees, guardians for any minor children, and power of attorney agents are still available and capable of serving in those roles.
2. Review for changes in state and federal tax laws. In 2009, estates worth less than $3.5 million are exempt from federal estate tax. However, the exemption for the Illinois estate tax is set at only $2 million. As a result of this "decoupling" of the federal and state estate taxes, an estate that is exempt from federal tax may still be subject to liability for Illinois tax. If you have a trust which was drafted to minimize potential estate tax liability, it should be reviewed to ensure that the tax provisions are consistent with the current law.
3. If you have a living trust, make sure that your assets are owned by the trust. Many people create living trusts to avoid having their estates go through the probate process upon death. However, the trust is only successful as a tool for probate avoidance if it is fully funded. Your assets, including your home and most financial accounts, should be held in your trust instead of in your name individually.

If your documents are in need of review, or if you'd like to discuss setting up your estate plan, please call me at (847) 705-9563 to schedule a free consultation