How do you know if it’s the right time to update your estate plan? In this blog post, Goyette, Ruano & Thompson, Inc. will help you through some key considerations and show you why staying proactive is the best approach for estate planning. Let’s take a look at how you can make sure your life lines up with your legacy plan.
Understanding the Importance of Regular Updates
Regularly updating your estate plan helps to ensure that your wishes are accurately reflected and that your assets are protected. Life is ever-changing, and so are your circumstances. Marriage, divorce, births, deaths, changes in financial status, and alterations in laws are all significant events that can impact your estate plan.
When It’s Time for an Update
Change in Family Dynamics: If there have been any additions or losses in your family, such as births, deaths, marriages, or divorces, it’s time to review and update your estate plan accordingly. For example, if you have recently welcomed a new child or grandchild, you may want to include them as beneficiaries in your will or trust. Similarly, if you have gone through a divorce, you may need to remove your ex-spouse from your plan and designate new beneficiaries or executors.
Financial Changes: If you have bought or sold property, started a new business, or received a large inheritance, these events can impact the structure and distribution of your assets. For instance, if you have acquired new property, you may need to update your will or trust to specify how that property should be handled upon your passing. If you have started a new business, you may need to incorporate succession planning into your estate plan to ensure a smooth transition of ownership.
Health Concerns: By updating your healthcare directives, you can specify the type of care you want to receive, such as life-sustaining measures or palliative care. Powers of attorney allow you to designate trusted individuals to make healthcare and financial decisions on your behalf if you are unable to do so yourself. Regularly reviewing and updating these documents ensures that your wishes are respected and that your loved ones are not burdened with difficult decisions during an already challenging time.
State and Federal Laws Updates: Laws governing estate planning are subject to change, and your plan may need adjustments to comply with current regulations. Changes in tax laws, for example, can have a significant impact on your estate plan. If your plan was created based on previous tax exemptions or rates, it may no longer be effective in minimizing tax liabilities for your beneficiaries. Similarly, changes in state laws regarding inheritance, probate, or powers of attorney may require updates to your plan to ensure its validity and enforceability.
Outdated Documents: Over time, your personal preferences, family dynamics, and financial situation may have evolved, rendering your old plan inadequate. Additionally, older documents may not take advantage of new planning strategies or tax benefits that have become available. Reviewing and updating your plan periodically ensures that it aligns with your current goals and takes advantage of the latest legal tools and strategies.
Why You Should Work With Goyette, Ruano & Thompson, Inc.
Goyette, Ruano & Thompson, Inc. will help you ensure your plan is thorough, compliant, and reflects your current situation. Our experienced attorneys will review your existing plan, identify areas for improvement, and guide you through the update process with care and skilled precision.
Get an Estate Planning Consultation with Goyette, Ruano & Thompson, Inc. Today
Don’t wait for something major to happen – stay ahead by regularly reviewing your plan with the help of a knowledgeable California estate planning lawyer. Contact Goyette, Ruano & Thompson, Inc. today to schedule a consultation with our experienced California estate planning lawyers. Take the to secure your legacy and get peace of mind now.