As a Tallahassee Estate Planning Lawyer, I am often asked when someone should update their estate plan. The short answer is that an estate plan should be regularly reviewed to ensure it reflects your current wishes, laws, legislation and regulations and aligns with your overall goals.
Our wills and trusts lawyer generally recommends a revocable living trust as the core of an estate plan because it offers superior flexibility to adapt to your changing life circumstances versus other estate planning strategies. For example, a revocable living trust provides for distribution after your death and is invaluable in protecting you during any periods of incapacity in your life. In the linked post, our wills and trusts lawyer details the benefits of a revocable living trust for incapacity planning.
That said, three critical life events warrant a stern look and possible revisions to your estate plan. For residents in Tallahassee, understanding the importance of having an estate plan and keeping it updated is crucial. In this post, our estate planning lawyer explores three top reasons to regularly update and evaluate your estate plan.
1. Changes in Personal Circumstances
- Life Events: Major life events like marriage, divorce, the birth of a child, or the loss of a loved one can significantly impact your estate plan. For instance, new family members may need to be added as beneficiaries or other individuals removed as beneficiaries or from other roles.
- Relocation: Moving to a new state, like Florida, can affect your estate plan due to different state laws. For Tallahassee residents, ensuring your plan aligns with Florida’s legal requirements is essential.
- Financial Shifts: Changes in your financial situation, whether an increase or decrease in assets, require adjustments in your estate plan to reflect your current financial status.
If you have had any of these changes in your life, please consult an experienced estate planning lawyer near you to ensure that your estate plan still matches your goals and is legally sufficient to protect you and your loved ones.
2. Legal and Tax Changes
- State Laws: Estate planning laws can vary significantly from state to state. In Tallahassee, staying informed about the Florida laws governing estates, trusts, and probate is vital.
- Federal Tax Laws: Updates in federal tax laws, including estate tax and inheritance tax, can impact your estate plan. Regular reviews ensure compliance and optimal tax benefits. For example, the Tax Cuts and Jobs Act (TCJA) of 2017 estate tax exemption amount is set to expire in 2026. According to an article from Schwab, “[t]he exemptions will revert to 2017 levels, adjusted for inflation—about half of what they are now. That might be around $7 million for individuals and $14 million for married couples.”
Our estate planning lawyer cannot predict what Congress or state legislatures may do now or in the future, but you should be aware of changes like the Tax Cuts and Jobs Act potentially sunsetting. Regularly consulting with an experienced estate planning lawyer near you can be highly beneficial in keeping abreast of legal and legislative changes.
3. Evolving Relationships and Wishes
- Changing Relationships: Over time, relationships evolve. The individuals you once wanted as beneficiaries, personal representatives, agents under a durable power of attorney, healthcare proxies, fiduciaries or executors may change. However, if not formally changed during your life and in your sound mind, these people will remain to serve in these roles. Please be careful and regularly review your estate plan to reflect changes in personal relationships.
- Personal Wishes: Your wishes regarding healthcare, asset distribution, and guardianship for minor children may evolve as you age. Keeping your estate plan updated ensures that these wishes are accurately reflected.
- Changes in Health: Our health is our greatest asset. However, we are never guaranteed tomorrow. I experienced the challenges that Cancer brought to my wife and my young family. These essential health events, whether illness, surgery, disability or otherwise, impact our goals, financial plans and estates. If you face any health or other challenges impacting your wishes and desires, please review your estate planning documents to ensure they align with your goals and wishes. Check out the linked blog post from our wills and trust attorney on why updating your estate planning documents is critical before undergoing any medical procedures.
Conclusion
Regularly updating your estate plan ensures that your wishes are honored and your loved ones are taken care of according to your current desires and circumstances.
As a Tallahassee estate planning lawyer, we aim to help you navigate these changes smoothly and effectively. Contact us to review and update your estate plan, ensuring peace of mind for you and your family.
Compassionate Florida Estate Planning Services for Every Stage of Life and Income Level
Attorney Ben Patton at McRae & Metcalf has seen firsthand how critical proper estate planning is for establishing lasting security. This is why he dedicates personal attention to his clients to meet all their goals and provide peace of mind. If you’re ready to take the first step toward protecting your family and assets with an estate plan, please call our Tallahassee estate planning office today at 850-386-8000 or fill out our convenient contact form.
