When you've worked so hard to accumulate your properties and possessions, the following step is to ensure that your efforts are rewarded in the manner in which you intended. Whatever your goals are, whether it is to follow a succession plan, care for your family, or assist a charitable organization, you will require an up-to-date estate plan. It is the court's decision as to what should be done with your assets when you die if you do not take this step.
Contrary to popular belief, an estate plan is not simply a one-time drafted, signed, witnessed, and notarized document that serves you until you die. It is much more than that. Change occurs on a regular basis, whether in your own life, the lives of your loved ones, or in the legal system.
Reasons to Have Your Estate Plan Reviewed by a Legal Professional
As a result, At Parker Law Offices, estate planning attorneys typically recommend that you have your estate plan reviewed anytime a significant life event occurs in your family, whenever you inherit income, or at the very least every few years. An important factor is that estate planning legislation changes regularly, particularly as newly elected individuals at the federal and state levels make policy changes and as Congress passes new legislation, which can have a significant impact on your estate plan.
We can assist you in reviewing your estate plan to ensure that it is up to date and in accordance with your current intentions, regardless of whether we assisted you in developing your initial estate plan or whether it was prepared elsewhere.
Change is one of the few things that remain constant in life. People experience changes in their relationships, families, their living circumstances, and their financial situation as time progresses. Events in one's life such as birth, marriage, and death take place. All of these life events have an impact on one's status and wishes, which in turn have an impact on one's estate plan.
A Significant Life Occurrence
It is necessary to reassess your estate plan if you have encountered changes in your relationship such as divorce, the death of a spouse, or the remarriage of a former spouse.
In the event that your spouse is no longer available to oversee your estate after your death, you will need to find someone else to fill in for him or her, whether it is a child or another loved one. If you have just married, you may want to appoint your new spouse as co-trustee or successor trustee of your estate, if applicable.
Meanwhile, any changes in your family, such as the birth of a kid or grandchild, the adoption of a child, the disowning of a child, or the death of a child, may necessitate the modification of your estate plan as well.
Additionally, if you or anybody in your family suffers from a serious illness, becomes disabled, or passes away, you should review your estate plan to ensure that your loved ones will be taken care of in the event of your death.
Alternatively, if you or your trustee is unable to administer your estate, you can choose a corporate trustee to assist you in managing your estate in accordance with your instructions. Likewise, in the event that a trustee or beneficiary passes away, you must amend your estate plans in order to select a new successor trustee or, in some cases, to redistribute the assets among the beneficiaries.
Finally, if you have relocated to a different state, or if your trustee or any one of your beneficiaries has relocated, you should consult with an estate planning attorney to determine whether your estate plan will be affected, and if so, what changes you can make to accommodate the relocation.
Individuals who relocate to another state will be subject to a different set of state regulations, some of which will have an impact on your estate plan as a result of their individual state estate taxes. In such cases, it is advisable to retain the services of an experienced estate planning attorney who can guide you through the legal maze and ensure that your intended beneficiaries receive the inheritance you intend to give them.
Modifications to the Law
Changes in the law occur on a regular basis, particularly during election seasons, and some of these changes have an impact on estate taxes. As a result, it is critical for you to ensure that your trust is in compliance with current legislation.
If the law on estate taxes changes, your beneficiaries may be forced to pay much more taxes than you had expected when you died. To avoid this situation from occurring, it is critical to review your estate plan with an estate planning expert who can guide you through the new estate taxation standards.
On the other hand, the inverse is also possible. It's possible that new laws and regulations will be implemented that you can take advantage of. In order to lower the amount of taxes you owe, you can revisit previous trusts or create new ones to hold assets outside of your estate. This allows you to reduce the amount of money you owe in taxes.
Acquisition of Additional Real Estate or Assets
In addition, any changes in your net worth necessitate an examination of your estate planning documents. You may decide to add more life insurance coverage, buy more real estate, or acquire other assets when your financial situation improves. Alternatively, you may start a business, file for bankruptcy, or perhaps win the lotto.. If any one of these things occurs, it will have an impact on your net worth and financial condition, reducing the amount of inheritance you can give to your beneficiaries and eliminating your opportunity to inherit any amount of money from your spouse or other loved ones.
Depending on how many beneficiaries you wish to leave your inheritance to, the distribution of your assets will be more or less complicated. Changing your beneficiaries or removing beneficiaries will necessitate a change to your estate plan in order to reflect the changes.
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