Even with a will in place, your estate plan might not be as complete as you think. Life changes, such as getting married, buying property, or watching your family grow, can quickly make once-adequate estate plans outdated or incomplete. If you don’t have documents like a healthcare power of attorney or a living trust in place, there could be important gaps you’re not aware of. A quick review of your estate planning paperwork can go a long way in making sure everything still reflects your current wishes and needs. Signs That It’s Time to Revisit Your Plan You Don’t Have a Power of Attorney in Place A power of attorney allows someone you trust to make decisions on your behalf if you’re unable to. These documents are often divided into two categories: financial and healthcare. The financial power of attorney gives your designated person the ability to manage money, pay bills, or handle investments, while the healthcare version allows someone to make medical decisions based on your preferences. Without powers of attorney in place, your loved ones may be left scrambling during a crisis. Courts may need to get involved, and that can delay decisions and add unnecessary stress during already emotional situations. Your Will Hasn’t Been Updated in Years If it’s been more than a few years since you last reviewed your will, there’s a good chance it needs updating. A lot can change in five or ten years. Children grow up, family dynamics shift, and financial situations evolve. Your current will may not account for grandchildren, stepchildren, or even charitable organizations you now want to support. It’s also worth checking who you’ve named as executor. Is that person still the best choice? Are they still willing and able to serve in that role? A quick review every couple of years, or after any major life event, can help keep your plan aligned with your current intentions. You Don’t Have a Trust and Your Estate Is Growing You don’t need to be ultra wealthy to benefit from a properly structured trust. A revocable living trust can be a valuable tool for anyone who owns a home, has significant financial assets, or wants to reduce the burden on their loved ones after they pass. Trusts can help bypass probate, which often leads to fewer court delays and lower costs for your heirs. They also offer more control. For example, you can set rules for how and when beneficiaries receive their inheritance, which is something you can’t do with a basic will. If your estate has grown in recent years, adding a trust might be a smart next step. Your Beneficiaries Are Out of Date or Missing Beneficiary designations on retirement accounts, life insurance policies, and bank accounts can override the instructions in your will. That’s why it’s critical to keep them updated. You may need to update your beneficiary designations after a marriage, divorce, the birth of another child, or a death in the family to ensure those changes are reflected on all relevant accounts. Also consider naming contingent beneficiaries in case your primary choice is unable to inherit. Overlooking this detail can result in assets being passed through probate, even if everything else is in order. You’ve Moved to a New State Estate laws affecting probate rules, powers of attorney, and advance healthcare directives can vary from state to state. While most documents created in one state remain valid if you move to another, they may not align with your new state’s specific requirements or best practices. If you’ve relocated, especially across state lines, it’s worth having your documents reviewed by an estate planning professional familiar with local regulations. They can help ensure your plan is still structured to meet your goals and avoid unnecessary complications. Your Estate Planning Goals Have Changed When you first created your estate plan, your primary goal may have been ensuring your spouse or children were provided for. This is particularly common for people who initially draft their plans in their 30s or 40s. Over the years, a person’s priorities may shift, their family may grow, or they may experience unexpected life changes. Maybe your adult children are now financially independent and can take care of themselves, and you’d prefer your resources go toward charitable causes or protecting assets for your grandkids. Your documents should reflect your current goals and financial picture, not provide safeguards for contingencies that are no longer relevant. If you’ve built more wealth, your kids have grown up, you’ve separated from your spouse, or you’ve simply rethought how you want your legacy to look, it’s worth reviewing whether a plan you drafted decades ago still supports your goals. Are You a Phoenix, Peoria, Tempe, or Scottsdale Retiree Who Needs Estate Planning Assistance? Creating an estate plan isn’t a one-time exercise. It should grow and change with your life. If it’s been years since you looked over your documents, or your financial or family situation has changed since you drafted them, it may be time for a review. Fullerton Financial Planning offers comprehensive estate planning services for retirees, savers, and families throughout the Valley. Our estate planning professionals can help you identify what’s missing and modify plans based on your current life and preferences. Call us at (623) 974-0300 to schedule a meeting.

For many investors, retirement savers, and households, estate taxes feel like a distant concern; something only the ultra-wealthy need to think about. The truth is a bit more complicated. The current limits are fairly high, and the vast majority of households are exempt. However, the exemption amount can drop, potentially exposing more families to steep estate taxes. Whether or not your estate ends up being taxed, planning ahead can make a meaningful difference in how much of your legacy stays with your loved ones. What Is the Estate Tax, and Who Does It Affect? The federal estate tax applies to the total value of your estate at the time of your death, including your home, savings, investments, and other assets. As of 2025, estates valued under $13.99 million per individual or $27.98 million for married couples are exempt from federal estate tax. Unless Congress takes action, the exemption is projected to decrease by roughly half to $6.8 million per individual or $13.6 million for married couples in 2026. In addition to federal taxes, some states impose their own estate or inheritance taxes, each with different rules and exemptions. Arizona, for example, currently has no estate or inheritance tax, but it’s still important to keep an eye on federal changes and how they might affect your long-term planning. Take Advantage of the Annual Gift Tax Exclusion One of the simplest ways to reduce the size of your taxable estate is by making gifts during your lifetime. In 2025, you can give up to $18,000 per person per year without triggering gift tax reporting. Married couples can combine their exclusions to give up to $36,000 per recipient each year. Gifting over time can gradually reduce your estate’s value while transferring funds to your intended beneficiaries without tax. Refine the Way Your Trusts Are Structured Not all trusts are designed to reduce estate tax exposure. Irrevocable trusts, such as irrevocable life insurance trusts (ILITs), charitable remainder trusts (CRTs), and grantor retained annuity trusts (GRATs), can remove specific assets from your estate and transfer them in a tax-efficient way. Reviewing how your trusts are structured and funded with an estate planning professional may uncover opportunities to improve tax outcomes or adapt to changing laws. Review Your Beneficiary Designations and Asset Titles Certain accounts, like retirement plans or life insurance policies, pass directly to named beneficiaries outside of probate. However, they’re still considered part of your taxable estate in many cases. Reviewing how these accounts are structured with an estate planning professional can help families minimize the risk of double taxation, reduce administrative delays, and ensure their plan is as tax-efficient as possible. Larger Estates May Want to Explore Lifetime Giving Strategies Estates that exceed the estate tax exemption threshold may benefit from more complex strategies than the typical family might require. These include grantor retained annuity trusts (GRATs), family limited partnerships (FLPs), or even strategic life insurance planning to offset potential taxes. These tools are inherently complex, which is why families often benefit from the assistance of a team of financial planners , tax professionals , and estate planning experts working in conjunction on a comprehensive plan. Work With Professionals Who Stay Abreast of Changes to Estate Tax Law Unless new legislation is passed, the current estate tax exemption is scheduled to revert to roughly half its current amount in 2026. That change could pull many more families into taxable territory, particularly those with valuable real estate, closely held businesses, or significant investment portfolios. The exemption amount and rate have changed frequently. In 2001, the exemption was just $675,000 with a 55 percent top rate. It rose to roughly $5 million in 2011, indexed for inflation, with a 35 percent rate, which increased to 40 percent in 2013. It wasn’t until the Tax Cuts and Jobs Act that the exemption doubled. If recent history is any indication, households should plan as if the current exemption and rate will not reflect the tax situation at the time of their passing. Having a plan that’s thorough and flexible, and working with professionals who can track changes and recommend modifications when needed, can help ensure your estate plan stays aligned with your goals. Don’t Overlook Step-Up in Basis Rules For many families, the step-up in basis can be just as important as estate tax planning. When heirs inherit certain assets, like real estate or stocks, the value is typically stepped up to the fair market value at the time of death. This can significantly reduce capital gains taxes when those assets are later sold. Trust structures and asset transfers can be designed with this rule in mind. Coordinate With Your Broader Financial Plan Effective estate tax planning doesn’t happen in isolation. It’s important to coordinate with your overall retirement plan, charitable goals, and income tax strategy. For example, decisions about when to draw from retirement accounts, whether to convert traditional IRAs to Roth accounts, and how to use donor-advised funds can all impact your estate’s long-term tax exposure. A team that incorporates financial advisors, tax experts, and estate planners can help align your estate plan with your broader financial picture. Planning Isn’t Just About Taxes for Arizona Families While reducing taxes is an important goal for many families, estate planning is ultimately about ensuring your wishes are carried out, your family is protected, and your legacy is preserved. Working with a financial professional can help you identify gaps, explore opportunities, and build a strategy that fits your goals today and in the future. Learn more about your exposure to estate taxes and receive guidance on tax planning strategies that may reduce their impact by calling Fullerton Financial Planning at (623) 974-0300.