An estate plan is not static; it grows with your life's circumstances and changes in the law. Just as creating an estate plan is an important step in protecting your assets and carrying out your wishes, it is equally important to revisit and update the same from time to time. In New York, there are a number of life and legal changes that may affect an estate plan. This article discusses some of the more important occasions when you need to review and update your plan so that it is effective and relevant to your needs.
Major Life Events
Major life events in your personal or family life constitute one of the most prevalent reasons behind updating an estate plan. Such incidents include:
Marriage or Divorce: A new marriage or divorce will affect named beneficiaries, powers of attorney, and inheritances. You will need to update your estate plan to reflect your current wishes.
Birth or Adoption of a Child: In case you have a new child or you adopt, your plan needs to take into consideration his or her inheritance and naming of guardians in case something happens to you.
Death of a Loved One: The death of a spouse, child, or other key beneficiary may call for changes in your distribution plan or the naming of new executors or trustees.
In this sometimes difficult transition process, a firm like Katzner Law Group can update an estate plan to better conform with your changing needs.
Changes in Financial Circumstances
Your current financial situation has a huge influence on your estate plan. If your wealth considerably changes upwards or downwards, then it is time for changes in your estate plan. Examples include:
Receiving an inheritance.
Starting or selling a business.
Acquiring or disposing of significant assets, such as real estate.
These changes often revise the estate plan accordingly to ensure that assets and other belongings are distributed just as preferred and estate taxes are reduced to a minimum.
Changing States
Moving to a new state, including New York, often requires the need to review your estate plan for compliance with local laws. Estate planning laws vary from state to state, and documents such as wills, trusts, and healthcare directives may need changes in order to remain valid. When relocating, it is highly advisable to consult with a local estate planning attorney. They can make sure your plan meets New York's particular requirements in the best possible way.
Health-Related Changes
Health issues for you or your loved one can trigger the need to update your estate plan. This could be because you find yourself diagnosed with a chronic illness or disability or due to a change in advance healthcare directives such as living wills or medical power of attorney. By proactively addressing such changes, you ensure your medical and financial decisions will be carried out according to your will.
Legal and Tax Law Updates
Changes in estate planning laws or tax regulations often dramatically affect an estate plan. Regular review of a plan with an attorney will ensure that your estate plan is updated to address changes in the law and adopt new strategies to protect your wealth. Attorneys specializing in estate planning, like those at Katzner Law Group, keep up with current legal changes and advise about the changes that are needed to maintain an effective plan.
