Designing an estate plan can be a time-consuming and emotionally complicated
legal process. Once the paperwork is signed and notarized, people tend
to make the mistake of assuming they’re 100% protected for the rest
of their lives. While an old estate plan can protect you to an extent,
it’s still recommended that you visit an
estate planning attorney every few years to update your plan.
Estate Plans Reflect Your Life in the Present
Your estate plan is most effective when it’s updated to account for
your current lifestyle. The person you were 10-20 years ago is not the
same person you are today. Likewise, your estate plan may be lacking important
information and necessary beneficiary changes if it reflects your old
life circumstances.
Your estate plan needs to be updated for significant life changes, including:
- Career changes
- Births or deaths in the family
- Marriage or divorce
- Property purchases
- Illness or disabilities
- Changes in financial circumstances
Agents and Beneficiaries
A key reason to update your estate plan is that you may need to make additions
or revisions to your chosen agents and beneficiaries. For example, your
estate plan includes several important documents protecting your medical
choices and financial assets. You need to alter these forms if your agents
or beneficiaries are deceased, negligent, or no longer in your life. On
a more positive note, you may want to add new family members and friends
who have entered your life in the last few years.
Your Financial Situation
One of the key reasons people create estate plans is to ensure their assets
and property are appropriately distributed upon their deaths. You probably
worked with an estate planning attorney to
complete your will and establish any necessary
revocable or irrevocable trusts to protect your assets from probate court and taxes. However, as you go
through career changes and face retirement, your financial circumstances
no longer match your old estate plan documents. This is also true for
any property you’ve sold or purchased since your initial drafting.
Probate court has to appraise and process any financial assets and property that exist
outside of your will and trusts—this includes any assets listed
in pour-over wills.
Taxes and Probate
A benefit of estate planning is that federal, state and estate taxes have
a limited impact on any assets you’ve placed in a trust. This protection
doesn’t apply to any assets outside of your trust. Federal and state
tax laws change and update every so often, and not always to the benefit
of your estate plan. It’s in your best interest to periodically
review your plan with an estate planning lawyer to account for any tax
law changes.
Update Your Estate Plan Today
If you’re interested in updating your estate plan, contact the Law
Office of Kathryn Marteeny. Our estate planning lawyers can educate you
on updated estate laws and make necessary changes to your plan. Our goal
is to protect your interests and your family from probate court.
Contact the Law Office of Kathryn Marteeny
at (713) 936-2300 to schedule a consultation.