In addition, clients and their families may undergo changes that bear directly on the estate plan.  Dramatic changes in wealth may necessitate revisions to the plan. Births, deaths, marriages, divorces and other significant family events should also be followed up with an estate plan or trust review. It would be imprudent to file away the estate plan and assume everything has been taken care of as the years go by.

The recent economic downturn provides another reason to review an estate plan. The reason: market losses may have wiped out an intended gift.  Some estate plans, for example, leave beneficiaries a percentage of assets that remain after specifically assigned gifts are distributed. Such beneficiaries could end up with nothing if an estate's assets decline substantially due to market losses.

Choosing The Trustee
People often give too little thought to the selection of a trustee, which is a mistake given the role's importance. Even a trust that calls for outright distribution to the beneficiaries upon the trustor's death may take years to administer. Some distributions can take decades. During that time, the trustee will have to deal with numerous administrative, estate and income tax issues. It's also important to note that trustee actions often give rise to litigation.

Picking the right trustee is not always easy.  Sometimes people will automatically ask their children to serve as fiduciary. Some clients may ask their estate planning lawyer to either serve as trustee or make the decision for them.

The appointment of a trustee, however, shouldn't be done hastily. Clients need to ask themselves key questions. Is the candidate a good fit to handle the type of assets held in the estate?  Does the candidate have the right temperament and personality to deal with the beneficiaries?  Is the candidate competent, honest and professional?

Another consideration is whether there should be more than one trustee. Clients sometimes want a family member to serve as a co-trustee with a corporate fiduciary. Others prefer to have all their children jointly serve as trustee. There is no right and wrong answer, but be aware that issues could arise if multiple trustees have to reach unanimous agreement.

The consideration of questions such as these could influence whether an estate plan becomes the focal point of a court battle.

Ways To Limit Litigation If It Occurs
Litigation over an estate plan is sometimes unavoidable even if the document is well prepared. In such cases, the focus should be on how to efficiently settle the dispute.

Court battles involving trusts and wills are both expensive and public, and may involve personal issues and substantial delays. Mediation and arbitration, however, are alternatives that can streamline the process and take it out of public view.

In mediation, a neutral party-often a retired probate court judge or an experienced trust and estate attorney-is selected to hold a confidential settlement meeting where everything is "off the record" and cannot be used in litigation. This allows the opposing parties to candidly discuss settlement options. If the meeting is successful, all parties will sign a binding agreement at the end of the session. In arbitration, an arbitrator takes on the role of a judge, making the final ruling in a private process that involves less discovery than the public probate courts.