Thus, if your estate plan was created before then and you have not updated it since, you will definitely need to sign new health care directives so that they are in compliance with the HIPAA rules. While the federal Health Insurance Portability and Accountability Act (known as “HIPAA” for short) was enacted in 1996, the rules governing it were not effective until April 14, 2003. Lastly, stress test your trust by running a “fire-drill” to simulate what would happen if it were to go into effect now. If your family has gone through any changes such as a birth, death, marriage, divorce, etc., you will want to double check the distribution scheme in your will or trust to make sure that the beneficiaries are still those you would like to leave assets to. In addition, you will want to make sure those individuals you have appointed to serve as your fiduciaries (successor trustee, agent under a financial power of attorney, patient advocate, trust protector, etc.) are still able to act on your behalf if the need arises. Leaving them in could unnecessarily complicate your plan making it more difficult for your spouse or family to manage your trust after you die. For example, when reviewing your trust look for such terms as “Marital Trust,” “QTIP Trust,” “Spousal Trust,” “A Trust,” “Family Trust,” “Credit Shelter Trust,” or “B Trust.” With the exemption amount so high, it may not be necessary to utilize these planning strategies anymore. Now that the federal estate tax exemption is fixed at $10 million per person adjusted for inflation ($11.18 million in 2018 and $11.4 million in 2019), it is important that you review your estate planning to ensure that it still makes sense. Before entering into the new year, here are some things that need to be on your end of year checklist: As we all prepare for the holidays and the coming of 2019, it is important that we wrap up any loose strings.
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