Laws
change. Your life changes. It’s important for your estate plan to be
up-to-date with these changes. Your
estate plan is a set of documents, such as a will or trust, that dictate how
your assets will be distributed upon your death or incapacity.
Hopefully
your attorney considered your current legal and financial situation to create a
comprehensive estate plan tailored specifically to your needs. One of our goals is to educate the community
about the importance of hiring an attorney who will do this, as well as check
in with you to make sure your plan continues to fit those needs.
Estate
planning isn’t a one-time task. A solid,
comprehensive estate plan is like a living organism – it requires attention as
the environment changes – your environment changes. Whether those changes are political,
economic, or personal, you should review and update your estate plan and here’s
why.
1.
Ensure Your Wishes Are Respected
The
primary reason to update an estate plan is to ensure that an individual's
wishes are respected upon death. For example, suppose an individual has
recently acquired valuable property or has had changes in family structure
(such as marriage or children). In that case, updating the documents that
outline how assets should be distributed is important. If the documents are not
updated, this could lead to disputes between family members and legal complications
when probate occurs. Additionally, if laws change at the state or federal
level, those changes need to be incorporated into the existing estate plan to
remain valid and effective.
2.
Protect Your Loved Ones From Tax Implications
Another
reason for updating an estate plan is for future tax planning purposes. Without
proper planning and asset allocation, taxes can significantly reduce the amount
that beneficiaries receive after one's death. Additionally, some states have
transfer taxes on certain assets (such as real estate), which must be factored
into one’s estate planning decisions. In addition, changes in Federal tax law
may affect whether other taxes, such as capital gains tax, applies at the time
of death or while transferring assets during life – thus providing additional
incentive for individuals to review their plans regularly with their advisors
and make necessary updates when required.
3.
Ensure Your Medical Decisions Are Handled With Care
Estate
planning also encompasses contingency plans in case of incapacity due to
illness or injury – commonly referred to as disability planning. This means
creating end-of-life documents such as Advance Health Care Directives which
list specific instructions about medical treatments that should be administered
if certain conditions arise – such as if a person suffers from dementia or a
traumatic brain injury and can no longer make decisions on their behalf. This
planning can provide peace of mind knowing that an individual’s wishes will be
respected even if they cannot make decisions themselves due to illness or
injury.
4.
Leave a Legacy For Your Loved Ones
Finally,
updating an estate plan allows people to express gratitude for those who have
helped them over the years - whether it be through providing advice on
financial matters or being there simply by offering emotional support during
difficult times - by including them in a legacy interview with our firm.
Specific instructions can also be included in your plan regarding how
charitable donations should be handled after death - enabling individuals who
wish to donate part of their wealth to leave behind a lasting legacy that
furthers causes they believe in long after they pass away.
Keep
Your Estate Plan Up-To-Date
Maintaining
your estate plan helps ensure that your wishes are respected upon incapacity or
death; protects you from unnecessary taxes; helps with disability planning; and
allows you the chance to express appreciation towards those who have had a
positive impact on your life while still alive. Therefore, estate plans should
consider current circumstances and anticipate future events to avoid any
potential problems. We hold regular reviews of your estate plan through the
stages of change in your life or every three years.
Contact us today with your questions about your current
plan and if you need an update.
This article is a service of Ganvir Law, Personal Family
Lawyer®. We do not just draft documents; we ensure you make informed and
empowered decisions about life and death, for yourself and the people you love.
That's why we offer a Family Wealth Planning Session™, during which you will get
more financially organized than you’ve ever been before and make all the best
choices for the people you love. You can begin by calling our office today to
schedule a Family Wealth Planning Session and mention this article.