Updating Wills After Tax Changes

Changes in tax laws may very well affect the suitability of various provisions in a will. When state and federal tax laws are amended, added, or repealed, intelligent and forward-looking will provisions may no longer be effective to shield a decedent’s estate from heavy taxes. In some jurisdictions, New York for example, reformation of a will is sometimes possible after death. New York precedent allows (rarely) changes to a will if the reformation is consistent with the decedent’s intent to maximize tax savings. While reformation is a possible avenue to fix will provisions, it is usually best practice to revisit clients’ estate plans immediately after changes in tax laws to ensure tax-avoidance provisions remain effective.

See Carole M. Bass, Reforming a Will for Tax Savings, Wealth Management.com, May 19, 2017.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.