Estate Planning Lawyer
Estate Planning Tips: When to Update or Start Your Strategy
If you’re like most people, you don’t want to think about your estate plan. Not only is it a difficult subject for a lot of people, but it can also feel complex and redundant. Still, if you want to ensure that your wishes are honored and that your assets go to the right place, you need to start working on an estate plan now, no matter your age or your income.
Here are some tips on when you need to work on your plan:
Major Financial Changes
Anytime you have a major financial change, you need to think about your estate plan. You especially want to pay attention to your estate plan when it comes to finding a new, higher-paying job. As you begin to save money and perhaps open a retirement fund, you have moving parts to think about. You need to think about who you want to control your assets and who you want to benefit from your estate.
Major Family Changes
Major family changes can include the birth of a child, marriage, divorce, or blended families. You need to ensure that the beneficiaries are up to date. Likewise, if you have an executor, you do not want to fall out with him or her and then forget to remove the person as executor. If you don’t have an estate plan, you need to think of one when you have dependents. Start to think about what would happen to your children if something happened to you or who would inherit your assets.
If you recently came into money or assets via inheritance, you need to start thinking about your estate plan. Inheritances add to your net worth and your assets. If something were to happen to you, where would the money, property, or other valuable items go? If you already have an estate plan, then an inheritance could change your financial picture entirely.
If you don’t have an estate plan, now is the best time to do it. While you should never wait until you have considerable assets, you should not hold off once you do. Suddenly, if you were to die without a will or trust, your next of kin could inherit a major tax bill.
When it comes to your estate plan, the general rule is to check it every five years. The exception to the five-year rule is if you have any major life change that could affect your financial situation or the future of your assets. If you’re unsure about when to start or change your plan, consult with an estate planning lawyer in Fort Collins, CO as soon as possible for more information.