Once your estate plan is completed, we recommend that you revisit it on an annual basis just to make sure everything is squared away. Years fly by, and we easily forget to update our documents despite major family and financial changes. We recommend reviewing it with your attorney at least every five years. Your estate may even need updating more often if any of the below circumstances occur.
Changes in the Law
Under the current tax law, each individual may transfer up to $$5,340,000 tax-free during life or at death. If you have not revised your will or trust during the past 5 to 10 years, you may be missing out on this tax benefit. Also, if your estate planning was done when the exemption was much lower, your plan could be unnecessarily complicated.
Financial Success
If you have experienced the benefits of a promising investment, are selling a business, or expecting a successful initial public offering of your company, this could affect your estate planning. You can shift some of the potential monetary benefits of your success to your family and loved ones.
Financial Setbacks
Just as you would update your estate plan when expecting or experiencing financial gains, you should revisit and restructure it when experiencing financial setback.
Change in Relationships
A marriage or divorce is probably the biggest reason to update your will, living trust, any assets that pass outside of these documents. Likewise, if your spouse passes away, you should update your estate plan to reflect this, especially considering that you may have inherited more assets from your spouse.
Children or Grandchildren
If you become a parent, it is vitally important to update your estate plan. If you become a parent, make sure you have named a guardian for your children and provide for them financially in case something happens to you. If you become a grandparent, make sure your will and trust cover this new family member even if his or her parents died before you.
Declining Health
A diagnosis of a degenerative disease or terminal illness should prompt you to expeditiously get your estate plans in order
Whether you need to update your estate plan or begin the estate planning process, we are here to help. The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.