Careers

Experiences

Industries

Offices

Our Firm

Pages

Our People

Updates

Practices

Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

The best way to be sure that your thoughtful estate planning will work as anticipated when the time comes is to walk through it with your planning attorney, from the viewpoint of a person beginning the task of administrating your estate. This post is step three in stress testing your estate plan. See our posts on step one <a href="https://www.wnj.com/updates/is-your-familys-planning-actually-ready-for-an-unexpected-incapacity-or-death-stress-testing-your-estate-planning-step-1/">here</a> and step two <a href="https://www.wnj.com/updates/is-your-business-planning-ready-for-an-unexpected-incapacity-or-death-stress-testing-your-estate-planning-step-2/">here</a>.

core/paragraph

Before you start the walk through, make sure that your plan has been updated for new tax laws, recent asset growth and acquisitions, any new trusts or trust decantings, and family member changes.

During a stress test walk through of your plan, you should work with your attorney to:

Prepare an Estate Settlement Liquidity and Distribution Analysis, especially since the current higher exemptions might fund trusts differently than you planned.

core/list-item

Determine if either spouse has a Deceased Spouse Unused Exclusion (DSUE) amount from a predeceased spouse available to use and ensure these are accounted for. Note that:

core/list

Confirm that trust provisions allocating the burden of debts, expenses and taxes will operate as expected. In especially complex plans or situations, it is possible that the burden of these charges could unintentionally fall on persons unfairly or inappropriately.

Evaluate the growth and increase in value of your assets. Determine any changes in your liquidity needs from when your plan was created and ensure everyone is comfortable that sufficient cash will exist to pay taxes, expenses and specific bequests.

Confirm the assets will pass to the persons expected, and in the amounts expected, when the plan was prepared.

Review buy and sell agreements and LLC operating agreements to confirm assets will be handled in the manner assumed.

If the person whose planning is being tested is especially aged, in poor health or facing a terminal illness, consider preparing a draft of the estate tax return. Doing so will ensure you know where necessary documents are, and it will identify possible “red flags” that could prompt an audit and allow time for cleanup.

Stress Testing Protects Your Family from the Unexpected

You have too much at stake to be caught unprepared, and your family is too important to be left in the lurch by an estate plan you didn’t realize that you had outgrown.

Now is a great time to start conducting periodic stress tests of your estate planning. If your plan passes the test, you can really feel confident that you are ready for what life throws at you. If your plan doesn’t quite pass with flying colors, you will know what you still need to do to prepare.

Whether or not your plan passes, performing the test is time well spent in your quest to protect your family from the unexpected. Warner can help with stress testing your estate plan. Contact your Warner attorney or Mark Harder at <a href="mailto:mharder@wnj.com">mharder@wnj.com</a>.

Legacy Matters

Private Client and Family Office

Partner

Mark K. Harder

Estate Settlement and Trust Administration

Fundamental Estate Planning

Trusts and Estates

Will Your Estate Distribution Mechanisms Actually Work Following an Unanticipated Incapacity or Death? Stress Testing Your Estate Planning – Step 3

Warner Norcross + Judd LLP is responsible for the contents of our advertising and this website. Please read our full <a href="/privacy-policy/" aria-label="see privacy policy">privacy policy</a> available on our website. If you have any questions or comments about our website or our Privacy Policy please contact us at <a href="mailto:info@wnj.com">info@wnj.com</a> or 616.752.2000.

Will Your Estate Distribution Mechanisms Actually Work Following an Unanticipated Incapacity or Death? Stress Testing Your Estate Planning – Step 3

professionals