Why is it Vital to Keep Your Estate Plan Up to Date?
Although some people may consider an estate plan a one-time project they can create and forget about, the truth is that a comprehensive estate plan requires regular reviews and updates to maintain optimum effectiveness. Failing to revise your estate plan to account for changes in your life and assets can result in your assets being divided in ways you didn’t want, your estate becoming unnecessarily depleted by tax burdens, and loved ones missing out on the inheritances you wished to leave them. Our experienced Massachusetts estate planning attorney can provide guidance on how to keep your estate plan current so it can protect you, your beneficiaries, and your assets effectively.
What Types of Events Should Trigger an Estate Plan Review?
Most people should undertake a general review of their estate plans every three years to make certain it still fits their needs and goals. However, everyone’s circumstances are unique, and more frequent updates may be recommended. Certain situations, including the following events, may also warrant an immediate update to your planning documents:
Experiencing Major Life Events
Any significant changes in your life warrant reevaluating your estate planning documents. Births, deaths, marriages, and divorces all have the potential to affect your plans. Failing to adjust your plan after one of these events can result in unintended consequences, such as treasured family members unintentionally being left out of your estate planning. If you have named someone as a beneficiary in your estate plan who dies before you do, you may want to adjust the distribution of your assets.
Moving to a New State
Although some out-of-state planning documents may remain valid in your new home location, they may not function well with the local tax laws and estate codes, which could lead to increased costs, stress, and delays for your beneficiaries. If you’re new to the Woburn area, our law firm can assist you with reviewing and updating your estate plan to ensure it meets Massachusetts’ state guidelines.
Spending Significant Time Out of the State
If you have recently started to spend more time at a vacation home or winter residence, ensuring your estate plan is designed to protect you and your assets wherever you are can be crucial. Remember that real estate is probated in the state where it’s located, so it’s critical to consult with a knowledgeable lawyer to ensure your second home is passed to your beneficiaries with minimal hassle and in the way you prefer.
You may also wish to consider naming an alternate health care agent and power of attorney who live in or near your other residence. Having a backup plan is essential if you experience sudden incapacitation and your primary agents are not close by to make quick decisions on your care. You should also provide copies of your health care proxy and living will to your local doctor at every location where you will stay.
Changes in Health Status
As we age, our health circumstances may shift. If you’re facing a new diagnosis, are beginning to see signs of cognitive decline, or have other health concerns, it’s key to make sure you have drafted robust estate planning documents that can protect your person and your estate if you lose the ability to make or communicate decisions. A health care proxy and a durable power of attorney can all play a critical role in incapacity planning. When you create or update any of these documents, you should inform your medical provider and family members so everyone is aware of your wishes. Clear communication can prevent disputes, misunderstandings, and delays if you experience a future health emergency.
Acquiring New Assets
Wills, trusts, and other elements of your estate plan are only effective if they include all of your current assets. If you come into possession of new property, such as a home, vehicle, real estate, business venture, or stocks, you should meet with your estate planning lawyer to ensure these assets will be passed to your beneficiaries as you desire.
New Choices About Beneficiaries, Executor(s), Trustee(s)or Agents
You can update the terms and conditions of your will, trust, and other planning documents at any time as long as you possess the mental capacity to make legal decisions. However, it’s essential to carefully undertake these adjustments with the help of an attorney to prevent any errors or oversights that could cause the invalidation of your documents and substantial issues for your loved ones in the future.
How Can Evolving Tax Laws and Assets Impact Your Estate Plan?
Not only can changes in your personal circumstances necessitate a reevaluation of your estate planning documents, but certain external issues can also affect your plan’s functionality. It’s important to work in conjunction with a trusted estate planning attorney to ensure your plan adjusts to the shifting economic and legal landscape. Tax laws are ever-changing, so it’s vital to frequently reassess your strategies to minimize your estate’s tax liabilities and safeguard your assets for the people and causes you value most.
Your estate plan should also have the flexibility to adapt as your asset portfolio changes over time. If you plan to invest in newer financial products such as cryptocurrency or other digital assets, you may also need to consider how these items will fit into your estate plan and how they can be passed on to your heirs. Intellectual property is another valuable, yet often overlooked, asset that requires thoughtful planning to ensure your beneficiaries reap the full benefits of your hard work. Our knowledgeable attorney can help you build and maintain a tailored estate plan that accounts for your varied asset types and changing needs.
What Are the Advantages of Working With Our Skilled Estate Planning Lawyer?
At the Heritage Law Center, we believe in building strong client relationships so we can continue providing customized legal guidance throughout every stage of your life. We can help you navigate complex state and federal laws so you can have peace of mind that no matter what comes your way in life, your wishes will be carried out, and your beneficiaries’ inheritances will be maximized. To discuss updates to your current estate plan, contact our Woburn office today at 617-765-9307 to schedule a consultation.
