Once you create your estate plan, you shouldn’t stick it in a drawer or safety deposit box until you pass away. Your estate plan should evolve as you do. It needs to change as your circumstances or laws change. Otherwise, it could lead to unnecessary conflicts once you are gone.
Why Should I Review My Estate Plan Annually?
Annually reviewing your estate plan ensures that it is up-to-date with any changes to your personal and financial circumstances over the prior year, such as:
- Marriage
- Divorce
- Birth of children or grandchildren
- Death of your nominated executor, trustee, or beneficiary of your will or trust
- Substantial changes in income
- Acquisition of high-value assets, such as real estate
- Receiving a large inheritance
- Relocation to a new state
- Adverse changes to your health
- Changed preferences or wishes, including substituting your executor or trustee, removing or adding beneficiaries, or changing distributions from your will or trusts
Reviewing and updating your estate plan yearly also allows you to optimize it with new or amended estate and tax laws.
How Do I Update My Estate Plan?
An experienced estate planning lawyer can review your existing plan, discuss events that may have occurred since you last revised it, and advise you on any changes to regulations that could benefit you. You can also discuss changes to your preferences or wishes that you want to incorporate into your estate plan. A comprehensive estate plan looks at every aspect of your life so the plan you have today will accomplish your long-term goals.
Key Components of an Effective Estate Plan
Depending on your financial and personal situation and your estate planning goals, your estate plan may incorporate elements like:
- Will – A will allows you to appoint someone to manage your estate after your death, designate how you want to distribute your assets, and nominate someone to serve as guardian for your minor child if you and your co-parent both pass away.
- Trusts – In a trust, you can appoint someone as a trustee to hold and manage assets on behalf of your designated beneficiaries. Trusts can protect assets from creditors or other parties, reduce your heirs’ tax liabilities, and simplify the distribution of assets to loved ones after death by avoiding probate.
- Power of attorney – A power of attorney authorizes an agent to make legal or financial decisions if you become incapacitated.
- Health Care Proxy – A health care proxy appoints someone to make medical and end-of-life decisions based on your preferences if you cannot do so.
- Beneficiary designations – With financial accounts or life insurance policies, you can nominate people to receive assets or benefits through beneficiary designations.
Contact an Estate Planning Lawyer Today to Review Your Estate Plan
Do you need to review or update your estate plan? The experienced attorneys at Amoruso & Amoruso LLP have over 60 years of combined experience building comprehensive estate plans for clients in New York and Connecticut. We can recommend whether any changes should be made to your existing estate plan and discuss the best ways to achieve your goals. Contact us today for a confidential consultation with an experienced estate planning attorney.
