Estate Planning
An estate plan is not something that should be created once and forgotten about. Over time, your life circumstances and goals may change, making it important to update your estate plan accordingly. Whether you’ve recently experienced a major life event or it’s been several years since you last reviewed your documents, there are certain times when it’s wise to revisit your estate plan with a lawyer. Below are some key situations where working with an estate planning lawyer can help ensure your wishes are current and legally sound.
Marriage Or Divorce
Marriage and divorce are two major life events that significantly impact your estate plan. When you get married, you may want to update your plan to include your spouse as a beneficiary, designate them as a guardian for your children, or name them as a power of attorney for financial or healthcare decisions. In the case of divorce, it’s just as important to update your estate plan to reflect your new circumstances, removing your former spouse from any decision-making roles or as a beneficiary. Failing to update these documents can lead to unwanted legal outcomes.
Working with a lawyer after marriage or divorce is essential to ensure that your estate plan reflects your current relationships and intentions.
The Birth Or Adoption Of A Child
The arrival of a new child or the adoption of a child is a joyful and life-changing event. It’s also a critical time to review and update your estate plan. Adding a new family member means that you’ll need to designate guardians in the event that something happens to you. You may also want to set up a trust or update beneficiary designations to account for the new addition to your family.
By working with an estate planning lawyer, you can create or update your plan to include provisions for your child’s future care and financial security, ensuring they are protected should the unexpected happen.
Significant Changes In Your Financial Situation
If your financial situation has changed significantly—whether due to an inheritance, selling a business, or purchasing valuable assets—it’s important to update your estate plan to reflect your current financial standing. This may include making adjustments to your will or trust, reviewing your retirement accounts, and ensuring that any new assets are included in your plan.
Estate planning lawyers can help ensure that your wealth is properly structured to avoid probate or reduce taxes, making sure your assets are distributed according to your wishes. Attorneys like those at Carpenter & Lewis PLLC can attest to the importance of keeping your estate plan up-to-date with changes in your financial life.
Changes In Tax Laws
Tax laws are always evolving, and significant changes in estate or inheritance tax regulations may impact how you want your estate handled. If there have been changes in federal or state tax laws since you last updated your plan, it’s a good idea to consult with a lawyer to see how those changes might affect your estate.
A lawyer can help you make any necessary adjustments to your estate plan to minimize tax burdens and protect your beneficiaries from unexpected financial obligations.