Lets Talk Money Online - Does your estate strategy still make sense?

A lot has happened financially in the past few years. The stock market fluctuated dramatically throughout the decade and real estate prices tumbled in many places. If you had figured that your net worth would continue to grow at the same pace and unabated, you may be surprised when you take a look at your overall finances.

In any environment, it's always important to monitor your estate strategy regularly, including wills and trusts. What will you pass on to loved ones and favored charities? How much are you worth? And if your net worth has dramatically decreased, how do you get it moving back in a positive direction? You might pay particular attention to the following areas after a decade of change.

The financial crisis not only affected individuals and companies but also crippled some state budgets. When states need money, they typically cut expenses, raise taxes or both. Depending on your state of residence and the size of your estate, increased taxes may hit you and your heirs in the pocketbook.

Work with an estate planning attorney to learn how changes in estate tax law may affect you and your loved ones. Your advisors might suggest trusts and other vehicles, while your licensed financial professional might suggest financial products to help cushion the estate and inheritance tax blows.

If your intention was to leave a sizable sum to a favorite charity, that size may be smaller than you originally planned after last decade's market performance. Talk with your tax professional to make sure you are still getting the most tax advantages from your giving, both now and in the future. Also consider a variety of trusts and insurance products that can benefit both your family and your charity, while possibly increasing your net worth in the process.

If you have adult children struggling to meet adult financial goals, such as funding college expenses or buying a first home, you can help them and reduce potential estate taxes simultaneously. This year, with this simple strategy, you and your spouse can each gift up to $13,000 to as many people as you like, free of federal gift taxes, lowering your potential estate tax bill and helping loved ones.

More tax changes are possible as cash-strapped governments try to make ends meet, so constantly monitor your estate strategy.

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