'For CUNA Mutual Group employees, reviewing your estate plan every few years is essential to keep pace with evolving family needs, tax law changes, and shifting financial priorities.' — Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'CUNA Mutual Group employees who revisit their estate plans regularly are better positioned to adapt to tax law changes and life transitions that could otherwise disrupt long-term goals.' — Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How changing life circumstances and tax laws may impact the effectiveness of your current estate plan.
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Key estate planning components—such as trustees, health care directives, and trust structures—that may need to be updated.
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Practical steps for CUNA Mutual Group employees to keep their estate plans aligned with long-term financial and family goals.
Many individuals draft an estate plan—including health care directives, powers of attorney, trusts, and wills—and then set it aside for years. However, life circumstances, tax laws, and legal frameworks often shift over time. For CUNA Mutual Group employees managing long-term financial objectives, revisiting an estate plan every three to five years—or after major changes—helps keep the plan aligned with current needs.
Ten Signs Your Estate Plan May Be Outdated
1. Executors and Trustees: Are They Still Suited for the Role?
Executors and trustees carry major legal responsibilities, such as handling assets, filing tax returns, distributing funds, and acting on behalf of beneficiaries. These appointments may have been made under circumstances that no longer apply.
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- An executor may now be unable to serve due to health, relocation, or passing.
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- Professionals named in the plan may have retired or exited the industry.
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- Corporate fiduciaries may have undergone mergers or changes in structure.
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- Adult children listed as successors may now have other obligations or limitations.
CUNA Mutual Group employees may benefit from re-evaluating each fiduciary’s availability, financial awareness, and overall relationship with the family.
2. Trusts for Children: Have They Aged Well?
Trusts are often structured for minor children, outlining distribution ages and guardianship roles. But over time:
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- Guardianship provisions may be unnecessary if children are now financially independent.
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- Distributions set for age 25, 30, or 35 may have occurred or require adjustment.
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- Direct distributions might expose funds to potential claims in divorce or lawsuits.
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- Children’s maturity, spending patterns, or marital status may differ from earlier expectations.
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- Beneficiary designations on insurance or retirement plans may now conflict with trust goals.
- It’s worth assessing whether trust terms and retirement designations continue to reflect intended outcomes.
3. Health Care Proxies and HIPAA Authorizations
- If HIPAA authorizations are outdated, health care agents may be blocked from accessing vital medical information.
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- Without authorization, hospitals may limit updates or exclude family from treatment discussions.
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- Delays can affect treatment decisions and family coordination.
CUNA Mutual Group employees should verify that HIPAA documents are up to date—and that adult children, particularly those living independently, have health care directives of their own.
4. Growing Wealth and the Estate Tax Landscape
As of 2025, the federal estate and gift tax exemption is $13.99 million per individual and $27.98 million for couples. The annual gift tax exclusion is $19,000 per recipient.
However:
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- These elevated exemptions are temporary and expected to sunset in 2026.
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- Trust formulas created under prior laws may no longer be suitable.
CUNA Mutual Group executives nearing the exemption limit may want to speak with advisors about reviewing their gift strategies and trust funding formulas.
5. State Residency and Legal Nuances
Estate laws differ significantly by state:
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- Some states assess estate or inheritance taxes at lower thresholds than federal law.
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- Community property vs. common law distinctions can change how assets are divided.
If a CUNA Mutual Group employee has changed residency since creating their plan, a legal review may be warranted to enhance compliance with current state laws, particularly in states with unique estate tax structures like Massachusetts, Oregon, Washington, or Minnesota.
6. Portability and Credit Shelter Trusts
A surviving spouse may use any unused federal exemption from the deceased spouse through portability, but:
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- A federal estate tax return is required within nine months of death (15 months with extension).
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- Before portability, credit shelter trusts (CSTs) were common to preserve exemptions.
- Although no longer needed for federal purposes in some cases, CSTs may still be helpful for managing state or generation-skipping transfer (GST) taxes. Disclaimers and updates to trust structures may provide additional flexibility.
7. Charitable Giving: Aligning Purpose with Planning
Charitable giving is often a priority—but sometimes not reflected in estate documents. Potential planning tools include:
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- Specific gifts to charities listed in a will or trust.
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- Use of charitable lead or remainder trusts.
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- Donor-advised funds or private family foundations.
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CUNA Mutual Group retirees who value philanthropy should evaluate how well their estate plans incorporate these goals, and whether doing so could lead to tax advantages.
8. Estate Taxes vs. Income Tax Implications
Earlier estate plans emphasized reducing estate taxes, but income tax considerations are now equally important.
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- The federal estate tax rate is 40%.
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- Federal income tax rates can reach 37%, capital gains up to 20%, plus a 3.8% surtax.
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- Trusts reach the highest tax brackets with just $15,650 in income.
- It may be beneficial to shift income-producing assets out of trusts or re-evaluate distributions to individuals in lower tax brackets.
9. Life Insurance: Still a Strong Fit?
Life insurance policies created years ago may no longer align with your estate or cost objectives.
Consider:
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- Does the policy still perform competitively under current conditions?
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- Are premium costs sustainable?
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- Is it worth transferring ownership to an irrevocable life insurance trust (ILIT)?
It’s recommended that insurance policies be reviewed periodically to determine their ongoing relevance and financial impact.
10. Communication and Digital Organization
Many estate plans lack practical execution details. Family may not know where documents are stored. Fiduciaries might not have contact details or asset lists. Digital accounts and passwords may be inaccessible.
A comprehensive letter of instruction should include:
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- Contacts for attorneys, advisors, and fiduciaries.
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- An inventory of assets and their locations.
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- Login details for important digital accounts.
Clear planning and information access can simplify responsibilities and reduce confusion during transitions.
Bottom Line: Estate Planning Is a Process, Not a Product
As your circumstances and regulations evolve, estate documents should evolve as well. CUNA Mutual Group employees may consider:
- Revisiting documents every 3–5 years or after major changes.
- Involving attorneys, tax professionals, and financial advisors in reviews.
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- Reassessing roles, ownership structures, and beneficiary choices.
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- Including charitable goals and multi-generational intentions.
An estate plan should reflect your values and help facilitate your legacy.
Checklist: Key Areas to Review
| Focus Area | Action Point |
|---|---|
| Fiduciaries | Confirm that trustees and executors are still appropriate. |
| Trusts and beneficiaries | Reassess terms, ages, and children's evolving needs. |
| Health care and HIPAA | Confirm that documents and authorizations are up to date. |
| Tax exposure | Compare current asset values with federal and state limits. |
| State of residence | Ensure estate documents align with state-specific rules. |
| Trust structures | Evaluate GST, CST, and disclaimer trusts for relevance. |
| Charitable giving | Review charitable gifts or plans embedded in documents. |
| Income vs. estate taxes | Assess tax impact by ownership type and beneficiary structure. |
| Life insurance | Re-evaluate life insurance policies for ongoing usefulness. |
| Communication plan | Share critical info with fiduciaries and heirs. |
Legacy Planning in a Changing World
A plan drafted years ago may no longer reflect your current priorities. Keeping it updated allows for better alignment with family dynamics, tax laws, and economic trends.
Recent data indicates many individuals in their 60s fall into the 'senior sandwich generation,' simultaneously supporting aging parents and adult children. This multi-generational responsibility may require adjustments in estate planning such as modifying liquidity goals, rethinking timelines for inheritance, or creating structures that serve multiple generations.
Final Thought
An estate plan left unchanged is like using an outdated map—it may miss important updates such as new fiduciary considerations, revised tax laws, or shifts in your family’s structure. For CUNA Mutual Group employees focused on long-term planning, periodic updates can help your legacy reflect today’s realities.
With consistent reviews and collaboration with qualified professionals, your estate documents can remain an effective and adaptable guide for your family and financial future.
Sources:
1. Doc & Law. The Connection Between Estate Planning and Retirement Planning. Doc & Law LLP, May 2025, pp. 1–3.
2. JustVanilla: Why You Need to Periodically Update Your Estate Plan (and the Consequences If You Don’t). JustVanilla, Mar. 2025, pp. 2–4.
3. Lanza, John R., and John E. Lanza. Why Revisiting Your Estate Plan Upon Retirement Is Crucial. Lanza & Lanza LLP, 25 July 2024, pp. 1–5.
4. Allegro, Alex. “Estate Planning Steps to Protect Your Loved Ones and Legacy.” Kiplinger , 9 June 2025, pp. 2–4.
5. Kiplinger Staff. “Think a Repeal of the Estate Tax Wouldn’t Affect You? Wrong.” Kiplinger , May 2025, pp. 1–3.
What are the key differences between defined benefit plans and defined contribution plans offered by CUNA Mutual Group, and how might these differences affect my retirement benefits? As an employee of CUNA Mutual Group, understanding the nuances of defined benefit plans versus defined contribution plans is critical for effective retirement planning. Defined benefit plans typically promise a specific payout at retirement based on factors such as salary history and duration of employment. In contrast, defined contribution plans, like 401(k) plans, depend more on employee contributions and investment performance. Given the volatility in investment returns and changing employment patterns, employees might find themselves at a crossroad between predictable retirement income versus self-directed savings and investment risks. It's vital to explore how these plans could impact long-term financial security at retirement.
A defined benefit plan at CUNA Mutual Group offers predictable retirement payouts, typically based on salary history and years of service, ensuring employees a guaranteed income in retirement. In contrast, defined contribution plans, such as a 401(k), rely heavily on individual contributions and investment performance. Employees may face risks with defined contribution plans due to market volatility but benefit from greater control over their retirement savings. Depending on your financial situation and retirement goals, these differences can impact how secure your future income will be, either through guaranteed payouts or potential growth in investments.
How are pension costs determined in a defined benefit plan at CUNA Mutual Group, and what factors can influence these costs over time? The cost structure of a defined benefit plan at CUNA Mutual Group is predicated on various components, including service costs, interest costs, expected returns on assets, and amortization of gains and losses. Understanding these factors helps in managing potential burden changes on the organization's budget and employees' retirement expectations. For instance, factors such as fluctuating interest rates can significantly alter the present value of future liabilities, affecting the costs that CUNA Mutual Group bears. Employees should be versed in these aspects to contextualize their retirement benefits.
Pension costs at CUNA Mutual Group are influenced by factors such as service cost (new benefit accruals), interest cost (growth on past benefits), expected return on plan assets, and the amortization of gains or losses. Changes in these factors, like fluctuations in interest rates or salary adjustments, can affect the overall cost of the plan. Employees should be aware of how these variables impact their future pension benefits and how changes to the company's funding strategy could alter expectations.
What strategies can CUNA Mutual Group adopt to manage the costs and benefits of its defined benefit plan without drastically impacting employees' retirement security? CUNA Mutual Group faces the challenge of balancing cost management for its defined benefit plan while also ensuring that employees have adequate retirement benefits. Options like freezing benefit accruals, amending contribution formulas, or shifting to defined contribution plans can be explored. However, such strategies must be handled delicately to avoid significant disruptions to employees' retirement planning. Understanding employee concerns and the potential ramifications of these strategies is crucial to formulating a balanced approach.
CUNA Mutual Group can adopt strategies such as freezing benefit accruals, transitioning to cash balance designs, or reducing benefit formulas to manage costs. These strategies may lower expenses but must be carefully balanced to avoid significantly affecting employees' long-term retirement benefits. Clear communication about potential changes and their impact on retirement income is crucial for employees to adjust their retirement planning.
In what ways could regulatory changes influence the CUNA Mutual Group's pension plan design and its offerings to employees after retirement? Regulatory bodies frequently revise guidelines that govern employee benefit plans, potentially impacting how CUNA Mutual Group structures its pension offerings. For instance, changes to tax policies or pension funding requirements could affect administrative decisions regarding contribution levels or payout structures for defined benefit plans. It is imperative for employees to stay apprised of these regulations so they can understand any changes that might occur in their future benefits and what steps CUNA Mutual Group might take to adapt to new compliance needs.
Regulatory changes, such as adjustments in pension funding requirements or tax policies, can have a substantial impact on CUNA Mutual Group’s pension plan design. Changes in laws may require adjustments to benefit levels, contribution structures, or funding strategies. Employees should monitor such regulatory shifts to understand how they could influence future pension payouts and retirement strategies.
Could you explain the process employees at CUNA Mutual Group would need to undertake to access their retirement benefits upon leaving the company? For employees transitioning from CUNA Mutual Group to other ventures, it’s essential to understand the process involved in accessing retirement benefits. This process may involve determining eligibility for pension payouts, selecting between lump-sum distributions or annuitized payments, and understanding how past contribution levels affect final benefits. Employees are encouraged to seek guidance from the HR department or pension plan administrators to navigate this process thoroughly.
When leaving CUNA Mutual Group, employees need to assess their eligibility for pension benefits, choose between lump-sum payouts or annuities, and understand how their years of service and contributions affect the final payout. It's advisable to consult with HR or a plan administrator to navigate the options and ensure that the benefits are accessed appropriately.
What tools and resources does CUNA Mutual Group provide to assist employees in planning for retirement effectively? CUNA Mutual Group offers various resources designed to support employees in their retirement planning journey. These might include access to financial planning tools, informational webinars about defined benefit and contribution options, or one-on-one consultations with benefits specialists. Employees should actively participate in these offerings as a means of optimizing their retirement readiness and ensuring they are leveraging all available benefits to the fullest extent.
CUNA Mutual Group offers several resources for retirement planning, such as access to financial planning tools, retirement webinars, and consultations with benefits specialists. These resources are designed to help employees make informed decisions about their defined benefit and defined contribution options, ensuring they optimize their retirement strategies.
How does the CUNA Mutual Group approach the issue of pension funding, and what implications does this have for current and future employees? The funding strategy for the pension plan at CUNA Mutual Group has significant implications for the benefits that employees can expect. A well-funded pension plan can provide assurance for employees about the stability and security of their retirement income. Conversely, fluctuations in the funding status could lead the organization to consider changes in benefit formulas or contribution strategies. Employees should be aware of how funding levels could affect their future benefits and the overall health of the pension plan.
CUNA Mutual Group’s pension funding strategy is critical to maintaining the stability of retirement benefits. A well-funded plan assures employees of predictable payouts, while underfunded plans may lead to changes in benefit formulas or contributions. Employees should stay informed about the funding status, as it could affect the future security of their pension income.
What should employees at CUNA Mutual Group know about the potential risks and benefits associated with their defined benefit plan? Employees should have a clear understanding of the inherent risks and benefits linked to CUNA Mutual Group's defined benefit plan. While these plans offer predictable retirement income, they are subject to various risks such as underfunding issues, market volatility, and regulatory changes. This understanding equips employees with knowledge about their eventual retirement income and helps them plan strategically alongside their professional developments or transitions within their careers.
Employees need to understand that defined benefit plans at CUNA Mutual Group provide predictable retirement income but come with risks such as underfunding, economic fluctuations, and regulatory changes. By staying informed about these risks, employees can better plan for their financial security in retirement, potentially supplementing their pension with other savings strategies.
What happens to my retirement benefits if CUNA Mutual Group decides to freeze its defined benefit plan? The implications of freezing a defined benefit plan at CUNA Mutual Group would be substantial for employees. Understanding the details surrounding such a freeze, including whether it would impact future accruals or merely limit new benefits for incoming participants, is crucial. Employees should consider consulting HR for comprehensive information regarding their specific situations and how a freeze could influence their expected retirement payouts.
If CUNA Mutual Group freezes its defined benefit plan, employees may no longer accrue new benefits, though they retain previously earned benefits. A freeze could impact future retirement income, particularly for employees nearing retirement, as they could miss out on years of service accruals or salary increases factored into their final benefit calculation.
How can employees contact CUNA Mutual Group to inquire further about their retirement benefits and related services? To learn more about retirement benefits, employees should reach out directly to CUNA Mutual Group’s HR department or designated pension plan administrators. The organization provides channels such as in-person meetings, phone consultations, and online resources which are specifically structured to assist employees with inquiries related to their retirement benefits and participant obligations. Employees can also explore dedicated web portals for additional information and updates on their pension plans.
Employees can contact CUNA Mutual Group directly through their retirement solutions division at 1-800-356-2644 or visit the website at CUNA Mutual Retirement Solutions for more information about retirement planning services and personalized assistance with their retirement benefits.
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