The process of estate planning requires continuous work because it demands development throughout your life. People think their estate planning work is complete once they create a will or trust. Your estate plan requires assessment because life events, financial changes, and legal developments will alter your situation. Document assessment should be performed because failure to do so will result in unintentional outcomes, family conflicts, and increased tax obligations. You need to contact your family estate planning lawyer in Frisco, TX, at specific times to ensure your legal rights stay protected.
After Marriage or Divorce
Marriage and divorce are two of the most vital life events that require immediate estate plan upgrades. When you marry, you may want to include your spouse as a beneficiary, appoint them as your healthcare proxy, or name them as executor of your will. Your new priorities require you to update your estate planning documents, as they currently do not reflect your current situation.
In the same way, divorce requires immediate changes. If documents remain unchanged, former spouses will continue to hold their status as beneficiaries or decision-makers. Certain states automatically cancel specific legal rights after a divorce, while other states maintain these rights. You need to contact your attorney at specific times to ensure your legal rights are protected. Your lawyer helps you develop an estate plan that matches your current wishes while safeguarding your assets.
The Birth or Adoption of a Child
You need to update your estate plan because your family’s growth needs this service. You will need to specify a legal guardian for your child because the court will choose the caregiver who will look after your child in case something happens to you. You should create a trust that will control your child’s assets until they become an adult. The process requires you to update your beneficiary designations and modify your life insurance policies while you establish protection for your future financial needs. The lawyer will assist you in creating an estate plan that will protect your family members during their lives.
Significant Changes in Financial Status
Any major financial change requires you to review your estate planning documents. This process includes receiving an inheritance, selling a business, buying property, and facing financial difficulties. The distribution of your wealth will be affected by changes in asset worth, which will also impact your tax planning methods. High-value estates benefit from advanced planning tools, which include trusts and gifting strategies to reduce their tax obligations. Financial difficulties will force you to either simplify your estate plan or change how assets will be distributed.
Relocating to a Different State
The laws are different for planning your estate depending on the state you live in. As such, when you relocate to another state, your pre-established documents may not comply with local laws. Most people have wills and trusts that are valid in more than one state, but there may be some differences regarding the length of time for the distribution of probate assets in each state. For example, the signing requirements for a will may differ between states, so your durable power of attorney may require specific wording in your new state of residence. A phone call to your attorney following your move will help ensure that your documents continue to meet local law and function as intended following your move.
Changes in Beneficiaries or Relationships
As people change and grow, so should the people named as beneficiaries under the estate plan. You may wish to add or delete a beneficiary due to a change in family structure, an estrangement, or the death of a loved one. If you fail to change your estate plan when a beneficiary dies, you may create delays and/or confusion about how your estate will be distributed. Similarly, if your beneficiary designations are out-of-date on your retirement plans and/or insurance policies, those outdated designations will override the instructions provided in your Will. An estate planning attorney can help you ensure that all of your estate planning documents are in harmony with each other and will help avoid unwanted distributions. By doing periodic reviews, you can minimize the possibility of heirs disputing your estate and clarify your wishes.
The Finale
As your circumstances change, you will want to update your estate plan accordingly. Changes could be anything from marriage/divorce, a new child, a new financial situation, a change of residence, or changes in the law. If you are unsure how to proceed with these changes, it’s good to have an attorney who specializes in estate planning available to help you. You should also have your estate plan reviewed by your attorney periodically to help prevent mistakes. Being proactive during this time by creating an ongoing relationship with a qualified estate planner will help ensure that your intentions are known, your loved ones are protected, and your legacy is maintained for future generations.
