A review of your estate plan is something you should do within the first three months of the year. Even if it does not need any revisions, there is a strong probability that everything in your life has changed, and as a result, your program may be obsolete.
Things will happen over time that will affect the estate plan you have created. Your children may have started a new family by getting married or having children of their own. Maybe you changed residence, or perhaps you lost a spouse to death. Your estate plan has to be revised to reflect the changes during your life, regardless of what stage of life you are now in, as stated by Redkey Gordon Law Corp.
Taking the effort to create these papers in advance might assist loved ones who are left behind avoid squabbling and other sources of stress.
Make A “Death File” For Your Records
After you have completed the fundamental steps of estate planning, compile all of the necessary papers into a single spot and provide at least two trustworthy individuals with notice of the existence of the file and its location. It might be stored in a safe at home, in a safe deposit box at a bank, or in an attorney’s office. The individual(s) you designate to act as your power-of-attorney & executor need to be aware of the location of these papers and be able to obtain them if necessary.
Examine The Documents For Any New Information
As was just said, it is essential to do regular reviews of the prepared papers to determine whether or not any modifications are required. When you are looking through a will or even a trust, you should also check to see which of the stated property has been bought, sold, or transferred during that time. The paperwork needs to be updated to reflect the new situation if the ownership has changed.
Examine And Bring Beneficiary Designations Up To Date
Will not ensure the smooth transfer of all of an estate’s assets. Despite the provisions of a will, some assets, such as a 401(K), are distributed to the person designated as the account’s beneficiaries. It is also typical for this to occur with pensions, transfer at death accounts, life insurance, and joint accounts maintained with the right of survivorship.
Consider The Possibility Of Having To Pay Estate Tax
There was a $5.45 million exemption for individuals and $10.9 million for married couples for federal property taxes in 2016. Whether or not there is a tax obligation issue requires determining the assessed market-rate value of the assets in question. If you think your estate could be getting near the exemption limit, you should discuss the matter with Law Corp, a knowledgeable estate planning attorney. He will be able to explore the many strategies available to avoid paying the federal estate tax, which is a staggering 40 percent of any sum beyond the exemption of $5.45 million.
FINAL THOUGHTS
Thinking of your estate lawyer as something that has to be maintained regularly, much as your home and vehicle do from time – to – time when they need to be inspected and worked on. By ensuring that your estate plan is always up to date, you may ensure that your desires are carried out and save your loved ones from needless stress and financial burdens.
