Life Goes On: What To Know About Updating Your Estate Plan
If you've already prepared a comprehensive estate plan, congratulations. Many people procrastinate this important task, and making preparations in advance is an impressive way to show your care and concern for the ones you'll leave behind. An estate plan, however, is meant to be a dynamic manner of dealing with property, relationships, debt and more. Life will throw you surprises, and what worked for your situation a few years ago may no longer adequately address your life the way it is right now. Read on to learn about some key events that may prompt a need to update your estate plan.
Family Matters
No matter what, when it comes your family relationships you can expect things to constantly change. Everything from big events like births, adoptions, and marriages, to people who no longer hold the same position in your heart should prompt an update to your beneficiary list. For example, a grandchild that was very young when you first made your will may now prompt you to set aside funds so that they can attend a special type of school or college.
Property Lost and Gained
Big property changes, like the purchase of a home, should cause you to make an adjustment in your estate plan, but don't stop there. Take a look at any new businesses that you have started and ensure that plans are in place for it's continuance after your death. Remember, a business is an asset of your estate, and you must make arrangements to appoint powers of attorney and make other business-related provisions. Additionally, assets you no longer hold should be removed from your plans.
From State to State
If you've moved to a new state since you compiled your estate plan, you may need to have some of the articles, documents and provisions replaced. Not all states recognize trusts, wills, deeds and other legal instruments that were created in another state. Additionally, state tax laws will vary and could affect the bottom line of your estate.
Don't Forget Uncle Sam
If you created your estate plan with an eye towards tax savings, you may need to revisit your plans. The tax laws change from year to year and some of them could result in major losses if you fail to update your estate plan as well. Decisions made using outdated tax laws could come back to haunt your loved ones after your death if you don't stay on top of it.
The creation of a estate plan is only the beginning. These plans must be maintained properly, just like a piece of machinery. Stay in control of your estate, your family with thank you for it. Speak to an estate planning attorney, like Todaro David M Co LPA, right away to update your estate plan.