Creating an estate plan is one of the most powerful ways to leave a lasting reminder of your love for family and friends. Unfortunately, the best estate plans are not written in stone. Instead, your estate planning strategies should grow and change based on various evolving life situations.
As we weather the coronavirus pandemic and as we overcome countless challenges, it is important to make sure that your estate plan considers life changes. This article reviews four events that should cause you to review the terms of your estate plan.
Divorce and Marriage
Whether you just entered into a marriage or recently ended one, it is important to consider the relationship that current or former spouses have to estate plans. If you are entering into a new marriage, you likely want to make sure that your spouse is written into your estate plan in a way that most greatly minimizes tax issues.
Conversely, if you are ending a marriage, you likely want to make sure that your ex is properly excluded from your estate plan, which includes making sure that your ex is left out of any assets that pass through beneficiary designations.
The Death of a Loved One
Losing a loved one is a painful experience and some people find themselves unable to revisit the subject of their loved one’s death until months or years after. While it might be painful, it is important to properly revise the terms of your estate plan as soon as you can.
This might include removing the deceased person’s name from your will or appointing someone else to act as your healthcare representative. If your spouse passed away, you should also make sure that you perform the correct estate planning strategies to minimize the amount of taxes that you end up paying.
The Birth of a New Family Member
When people become a parent or grandparent for the first time, they often become aware of just how important it is to create an estate plan. In these situations, it is important to properly address critical issues involving guardianship and inheritance. While exactly how you choose to incorporate a child or grandchild into your estate plan is up to you, it is important to review your estate plan during this time.
Substantial Financial Changes
Whether it is losing a job, beginning a new business, or acquiring real estate, your financial situation will likely change several times during your life. The total amount of assets that are under your control can have substantial tax implications and create inheritance-related issues. Consequently, it is important to alter your estate plan in a way that reflects changes in your financial situation.
Speak With a Knowledgeable Estate Planning Lawyer
No matter if you are revising an existing estate plan or creating an estate plan from scratch, attorney Jim A Lyon can provide you with assistance to make sure that your goals are achieved. Contact attorney Lyon today to schedule a free case evaluation.