• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • (843) 815-8580
  • hunter@montgomeryestateplanning.com
  • 10 Pinckney Colony Road, Suite #402 Bluffton, SC 29910

Montgomery Law Firm, LLC

Your Trusted Estate Attorney in Bluffton, SC

  • Home
  • Our Firm
    • About Our Firm
    • Attorney Profile
  • Services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate & Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Special Needs Planning
    • Trust Administration & Probate
  • Elder Law
    • Are You A Caregiver?
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Hospice Care
    • Medicaid Planning
  • Resources
    • Blog
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Definitions
      • Estate Planning & Related Forms
      • Estate Planning Checkup
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate & Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Incapacity Planning
      • Irrevocable Trust
      • Legacy Wealth Planning
      • Trust Administration & Probate
    • Pre-Consultation Form
    • Special Needs Resources
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Webinars
  • Seminars
  • Reviews
    • Review Us
    • Our Reviews
  • Contact Us
  • Search
Home / Estate Planning / Is Your Estate Plan Outdated?

Is Your Estate Plan Outdated?

August 24, 2021 by Hunter Montgomery

estate planning processOne of the major estate planning mistakes that people make is the failure to recognize the fact that this is an ongoing process.

When you execute your initial estate plan, you are working with circumstances that are inevitably going to change if you act when you are relatively young. You should be prepared to make revisions as time goes on because they will probably become necessary.

Natural Progression

All responsible adults should have estate plans in place, and an estate plan for most younger single people will be relatively simple. You should have an asset transfer vehicle like a will or a living trust, and you should address possible incapacity.

A living will is a document that is used to state your life-support preferences, and you should add a durable power of attorney for health care. The power of attorney will empower an agent that you choose to make medical decisions on your behalf that are not related to life-support.

If and when you get married, someone else will be relying on you, so estate planning becomes that much more important. You and your spouse could potentially create a joint living trust, and you could alternately create your own separate estate plans.

This is something that you should discuss in advance so you are both on the same page going forward.

Another dimension is added if you have children. You have to name a guardian in a simple will, and you should make sure that you carry enough life insurance.

When you have a living trust, you would act as the trustee while you are living, and you and your spouse would be would be co-trustees if you have a shared living trust. You would name a successor trustee to administer the trust after your death.

The successor would be able to manage assets on behalf of a minor beneficiary, and this would include life insurance proceeds. Another option is the utilization of a testamentary trust, which is a trust that is contained within a will.

As your family gets bigger, you will need to adjust the plan to include the newcomers. Another consideration is the potential loss of someone that may have been named as the trustee or executor.

Asset Protection

You should take steps to preserve your legacy along the way as your situation changes and your priorities shift. Long-term care costs are a looming threat, because most seniors will need paid living assistance, and Medicare does not cover custodial care.

These expenses can be considerable, and a married couple could face two different sets of nursing home bills.

Medicaid is a federal government health insurance program that will cover long-term care. You are probably aware of the fact that it is a need-based program, so you can’t qualify if you have significant assets in your name.

You could convey resources into an irrevocable, income only Medicaid trust with future eligibility in mind. As the name would suggest, you can receive income from the trust’s earnings, but you would not have access to the principal.

The forfeiture of incidents of ownership is a good thing because the principal would not count if you apply for Medicaid, as long as you fund the trust at least five years before you seek eligibility.

The federal estate tax can also enter the picture for high net worth individuals. It carries a 40 percent top rate, and it is applicable on the portion of an estate that exceeds the exclusion.

It is $11.7 million in 2021, but the exclusion is going down to $5.49 million in 2026. There are steps that you can take to mitigate your exposure if your estate is exposed to this tax.

Schedule a Consultation Today!

Today is the day for action if it is time to revise your estate plan, and we can help you put an initial plan in place if you are ready to get started.

You can schedule a consultation at our Bluffton, South Carolina estate planning office if you call us at 843-815-8580, and you can use our contact form if you would rather send us a message.

 

  • Author
  • Recent Posts
Hunter Montgomery
Hunter Montgomery
Hunter Montgomery is the owner/managing attorney of the Montgomery Law Firm, LLC.He has been practicing estate planning law fsince 2002. Hunter is a member of the American Academy of Estate Planning Attorneys.

Hunter is a member of the South Carolina Bar Association, the Beaufort County Bar Association, and has served on charitable and advisory boards in the Bluffton/Hilton Head area.

Hunter graduated from Hilton Head High School. He then earned his Bachelor of Science Degree in Economics from Clemson University, in Clemson, South Carolina.

Hunter graduated Cum Laude from Regent University School of Law in Virginia Beach, Virginia, having earned a Juris Doctor Degree. He also wrote his doctorial thesis on Estate Planning Dynasty Trusts.

Hunter has called Beaufort County home for since 1984, where he lives with his wife and two children.In his spare time he dabbles in automobiles, reading history, hunting and fishing.
Hunter Montgomery
Latest posts by Hunter Montgomery (see all)
  • Sandwich Generation Juggles Responsibilities - February 27, 2023
  • How Can You Minimize Estate Tax Liability? - February 20, 2023
  • Elder Law Attorneys: Who Are They and What Do They Do? - February 15, 2023

About Hunter Montgomery

Hunter Montgomery is the owner/managing attorney of the Montgomery Law Firm, LLC. He has been practicing estate planning law fsince 2002. Hunter is a member of the American Academy of Estate Planning Attorneys.

Hunter is a member of the South Carolina Bar Association, the Beaufort County Bar Association, and has served on charitable and advisory boards in the Bluffton/Hilton Head area.

Hunter graduated from Hilton Head High School. He then earned his Bachelor of Science Degree in Economics from Clemson University, in Clemson, South Carolina.

Hunter graduated Cum Laude from Regent University School of Law in Virginia Beach, Virginia, having earned a Juris Doctor Degree. He also wrote his doctorial thesis on Estate Planning Dynasty Trusts.

Hunter has called Beaufort County home for since 1984, where he lives with his wife and two children. In his spare time he dabbles in automobiles, reading history, hunting and fishing.

Blog Subscription

Sign up for our blog to receive the latest estate planning news and updates.

Map

Map

Business Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM
Montgomery Law Firm, LLC

Montgomery Law Firm, LLC. helps you define what's important.

Montgomery Law Firm, LLC

Contact Info

10 Pinckney Colony Road
Suite #402
Bluffton, SC 29910

Toll Free: (843) 815-8580
Mon-Fri: 9:00am – 5:00pm

Quick Links

  • Our Firm
  • Reviews
  • Privacy Policy
  • Disclaimer
  • Irrevocable Trust FAQs

Webinars Sign up

© 2023 American Academy of Estate Planning Attorneys, Inc All rights reserved.