Consider why you should update your estate plan at the end of the year.
As the year draws to a close, many people take the opportunity to reflect on their goals and plan for the future. It’s also an ideal time to revisit and update your estate plan. Life changes quickly, and an outdated estate plan could leave your loved ones unprotected or your assets distributed in ways you didn’t intend. Here are five compelling reasons to update your estate plan with The Millman Law Group before the year ends.
Address Major Life Changes
Significant life events such as marriage, divorce, the birth of a child, or the death of a loved one can have a substantial impact on your estate plan. For instance, if you’ve recently welcomed a new family member, you’ll want to ensure they are included as beneficiaries. On the other hand, if you’ve gone through a divorce, you may need to remove your former spouse from your will, trusts, or retirement account designations. The end of the year is an excellent time to ensure your plan reflects your current life circumstances.
Incorporate Changes in Financial Status
A shift in your financial situation, whether it’s a promotion, inheritance, or the sale of property, can require updates to your estate plan. If your wealth has significantly increased, you may need to explore tax strategies like trusts to preserve your assets for your beneficiaries. Similarly, if you’ve acquired or sold major assets, your plan should be revised to reflect these changes. Reviewing your financial status at year-end ensures your estate plan accurately represents your current portfolio.
Account for Tax Law Updates
Tax laws change frequently, and these updates can directly impact your estate. For instance, adjustments to federal estate tax exemptions or gift tax rules could influence your planning strategies. Reviewing your estate plan with an attorney at the end of the year allows you to take advantage of current tax benefits and make any necessary changes to protect your assets. Staying informed about tax law changes can help minimize the tax burden on your estate and beneficiaries.
Ensure Guardianship Plans Are Current
If you have minor children, your estate plan likely includes guardianship arrangements. However, as time passes, the individuals you’ve named as guardians may no longer be the best choice due to changes in their circumstances or your relationship with them. The end of the year is an excellent time to review and update these provisions, ensuring that your children will be cared for by someone who aligns with your values and wishes.
Prepare for the Unexpected
Estate planning is ultimately about being prepared for the future, including unforeseen events. An annual review allows you to confirm that your healthcare directives, power of attorney, and other critical documents are up to date. If you’ve changed your preferences regarding medical care or decision-making authority, updating your estate plan ensures your wishes are honored. The end of the year is also a time to verify that your documents reflect the correct addresses and contact information for key individuals.
Updating your estate plan at the end of the year is a proactive step that can bring peace of mind and protect your legacy. Consulting with an experienced estate planning attorney, such as those at The Millman Law Group, ensures that your plan remains comprehensive and legally sound. Take time this year to review your estate plan and start the new year with the confidence that your family’s future is secure.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.