You can’t make an estate plan and then forget about it. Remember to update your estate plan regularly to ensure that it accurately represents your current situation.
If your estate plan is more than three years old, it’s time to update it. When there is a change in the tax law or other statutes that may affect your estate, you can review your estate plans.
Here are several life events that may necessitate an update to your estate plan. Before you look for “estate litigation attorney in New Jersey”, let’sthrough the article.
You’ve Moved to a New State
Each state has its own set of estate planning rules. In many jurisdictions, a spouse is entitled to a portion of the estate. Inheritance taxes are currently in place in some jurisdictions. Powers of attorney, living wills, and advanced medical directives are all subject to different state rules.
Update your estate planning documents after moving to a new state, as old records may become invalid. Consult “New Jersey attorneys” for estate planning in your area to determine evidence that you have recently relocated.
It’s especially important if you own a lot of property and move from a state where inheritance taxes apply. Your old state may tax your estate if you do not change your address.
Changes in Your Assets & Liabilities
Review your estate plan if the value of your assets or liabilities increases. Examine the distribution of the estate. Decide whether you’re happy with the current situation or want to make improvements in light of the new conditions.
A change in your estate’s composition necessitates a review. Reevaluate your proposal if you purchased or sold an asset that was a considerable part of your estate.
Financial Setbacks
The economy experiences ups and downs. Fortunately, we’ve been on a major “up” trend for the past eight years. What goes up does come down, as the saying goes.
You can review your estate planning papers if your net worth increases significantly (or whether it has increased/decreased considerably since the last time you revised it).
Executors or Trustees Become Inappropriate
The following are some of the situations that may necessitate a change of executors or trustees:
- Your will executor or trustee becomes physically or mentally incapable of carrying out their responsibilities.
- They aren’t able to serve anymore.
- Your estate plan has changed, and you’ve decided that someone else is a better fit now.
- Your trustee/executor becomes older, relocates out of state, or dies.
Your Retirement Strategy Is Out of Date
Failure to update beneficiary designations on IRAs, 401(k)s, and other retirement plans may be a costly oversight.
Many people are unaware that, rather than a will or trust, the beneficiary of these accounts is decided by the beneficiary designation form. If your beneficiary designations change, make sure to update your beneficiary designation documents.
Any major life event should serve as a reminder to review and, if necessary, update your estate plan. To ensure that your estate plan is up to date, contact the New Jersey estate planning lawyers at Michael Willis Law Group for a free, no-obligation consultation.
