When You Need To Update Your Estate Plan

An estate plan protects your beneficiaries from long probate processes during property division when you have died. Additionally, a comprehensive estate plan protects your heirs from hefty taxes imposed on assets and lowers the possibility of disputes over the distribution of wealth.

As such, you want your estate to be as accurate and up-to-date as possible. And you can achieve this goal with regular updates, keeping in mind that life changes can affect your estate plan. So, when do you update your estate plan?

Your Relationship Status Changed

Your relationship status is a big deal for estate planning. For example, suppose you crafted your estate plan when you were single, and now, you're married or in a civil union. In that case, you may need to update your plan to reflect your spouse. This step is critical even if you don't intend to add your spouse as the primary beneficiary.

In the same way, if you recently divorced or have become widowed, your estate plan should reflect that. You may have included your spouse as a beneficiary, and now that you are separated, you may want to make adjustments and remove them from the list.

Your Assets Changed

Review your estate plan and account for the new additions if your property or assets have increased. Just as life changes can affect your estate plan, changes in wealth can also require an update.

For instance, if you sold a business or acquired new real estate, you must include the changes in your estate planning documents. Failing to do so may result in tax liabilities.

Your State Law Changed

State law changes can drastically affect the implication of an estate plan. For instance, if your state passed a new law that imposes taxes on non-resident beneficiaries, you will want to review and adjust the documents accordingly.

In the same way, gift taxes, estate taxes, and other regulations are subject to change. So, if a new law dictates that you must pay more for estate taxes than when you first drafted the document, it is time to update your plan.

You Moved

Estate planning laws vary by state, and if you move to another state, you want your estate plan to comply with the local laws. Your old will may remain valid in the new state, but specific provisions may not have any legal effect. As such, you must update your estate plan to ensure it is still valid and effective.

Additionally, if you move to a state with more favorable tax laws, you should take advantage of that. Adjusting the documents can help you save a significant amount on taxes and keep more of your money in the family.

You Became a Parent

Again, changes in family dynamics can have an impact on estate planning. If you become a parent, your estate plan must account for any new members in the family. You may require to assign guardianship of the child if something happens to you and your spouse.

Furthermore, if you become a grandparent, consider updating your estate plan to include the new members. Although some estate plans let you include unborn children, you must update the documents if they are born.

Your estate plan is crucial for ensuring your assets pass on to the right people at the right time. As such, when life changes occur, ensure the document reflects that. A reliable estate planning attorney will guide you in making the necessary adjustments to your estate plan.

Cobb Law Group, LP is your trusted law firm for estate planning. Our attorneys are knowledgeable and experienced to help make sure your assets are safe, secure, and in the right hands even when you are no more. Contact us for a consultation.