Estate planning should be an ongoing process. As your situation changes, your estate plan must also change to account for new circumstances, needs, and goals. If it’s been a while since you last reviewed your estate plan, here are some estate plan updates to consider making before the end of the year.
Why Should I Review My Estate Plan?
Your life circumstances are constantly evolving. New marriages, divorces, births, deaths, jobs, and real estate purchases can all impact your estate plan. An outdated plan may no longer reflect your current situation and wishes. That’s why reviewing your estate plan annually and after any significant life event is critical. One of our estate planning lawyers can advise whether your plan is still on track to accomplish your goals. If not, they can adjust according to your preferences and any changes to state or federal laws.
Establishing or Updating Trusts
Trusts are valuable tools in estate planning for managing assets, minimizing taxes, and dictating how your wealth transfers to heirs. Common trusts include revocable living trusts to avoid probate, irrevocable trusts for asset protection, and specialized trusts for benefits like reducing estate taxes or providing for a child with special needs.
Trusts also require periodic updates after major life events like the death of the trustee or designated beneficiary, the birth of a child, or substantial changes to your net worth. One of our estate planning lawyers can evaluate your situation and ensure your trusts will transfer wealth wisely to future generations.
Maximizing Tax Benefits
Tax laws change frequently. Proper estate planning is critical to minimize the tax burden your beneficiaries face after your death. Gift taxes, estate taxes, and generation-skipping transfer tax exemptions and rates often shift with new legislation. Our estate planning team can review your current plan to take advantage of available exemptions and deductions.
Power of Attorney and Healthcare Directives
In addition to wills and trusts, a comprehensive estate plan includes a Power of Attorney and healthcare directives. A Power of Attorney allows you to name someone to handle your financial matters if you become incapacitated. A Health Care Proxy designates an individual to make health care decisions for you, including end-of-life decisions, if you lack the capacity to do so yourself. You should review these documents regularly in case you want to name someone new to oversee your affairs or make medical decisions for you.
Leveraging Current Economic Conditions
Economic factors like interest rates, market performance, and tax policies constantly shift. An outdated estate plan may miss opportunities presented by the current climate. For example, low interest rates make specific trust strategies more advantageous for transferring wealth in a tax-efficient manner. Similarly, depressed asset values can help you maximize lifetime gift exemptions. One of our estate planning lawyers can review your plan to employ strategies optimized for today’s unique environment, potentially saving you significant taxes and ensuring your assets better benefit your heirs.
Meet With One of Our Estate Planning Lawyers Today
Waiting too long to update your estate plan could have significant consequences for you and your family. Contact Amoruso & Amoruso LLP today to speak with one of our experienced Estate Planning Lawyers Rye Brook, NY, estate planning lawyers and enjoy the peace of mind that comes with knowing your estate plan is working the way it should.
