You should update your Estate Plan whenever a significant “Life Event” occurs!
Many people review their Estate Plan on a yearly basis. However, there are also many other reasons to update your Estate Plan. It is also a good idea to review and update your plan when a significant “Life Event” occurs. Sometimes these life events are expected and sometimes they are not. Being flexible and anticipating the need to make changes, is a normal part of any estate plan.
These life events can occur at any time. So when they do occur, we recommend focusing on updating your estate plan as soon as possible. These life events can consist of the following.
Marriage, divorce, birth, and death are major life changes that should be taken into account in updating any estate plan. Also as minor children become adults, their status on an estate plan may need to be changed as they gain their legal adult independence. These changes in your family may also trigger necessary changes to who is designated as your guardian or executor.
You and your spouse’s changing health condition may dictate changes to your estate plan. If you require long-term care or become incapacitate, you will need to make provisions for these changes in your estate plan. The additional costs associated with these changes in health, will have an impact on the value of your retirement plan and overall value of your estate. These changes need to be taken into account, which may require updating your estate plan.
Financial losses and windfalls have a tremendous effect on an estate plan. Whether there is a loss or a gain, your estate plan needs to take this into account. These financial changes may require creating new, or deleting old trusts to reflect these changes. Also, the major life changing milestone of shifting from the “working world” to “retirement” will trigger changes to your estate plan that need to be taken into account.
Both Federal and State laws change all the time. These include the tax laws that will have an impact on your estate plan. And these laws will vary from state to state. So, if you retire to a new state, these factors need to be taken into account within your estate plan.
There are a number of personal changes that can impact your estate plan. First, if you move to a new home, or retire out of state, these changes must be taken into account. Your home is typically the highest valued asset in most estate plans. Other personal factors can include who you want to serve or can serve as your executor or trustee, and who you want to benefit from an inheritance.
As you can see, there are many reasons to update your Estate Plan. Updating your estate plan to take account of major life events will help ensure that your legacy is passed along in accordance to your wishes, and that your heirs and beneficiaries receive their benefits as smoothly as possible.
Estate Planning is all about protecting your assets for your loved ones and beneficiaries. A smartly produced Estate Plan will also spare heirs a huge tax bite and eliminate family inheritance messes. MVP Law Group, A PC specializes in Estate Planning and Wills & Trusts. If you would like to learn more, then contact us at (818) 788-7881 or firstname.lastname@example.org