OC Elder Law
Importance Of Revising An Estate Plan
Having an estate plan is not an indication that the future of your loved ones is forever protected. As time goes by, there will undoubtedly be changes in your personal and financial situations. As such, periodic revision of your estate is essential to ensure your current needs and goals are reflected. For example, revision is necessary under the following circumstances:
The provisions of your will are not automatically adjusted by marriage or re-marriage. Therefore, provisions will not necessarily be made for your new spouse. Marriage provides each spouse with certain rights; however, your estate plan should be changed to ensure your new goals are reflected.
While you are married, it is highly likely that your estate plan would include providing for your spouse. This desire typically ends after a divorce; therefore, your estate plan should be adjusted as well.
If a significant inheritance is received by either you or your spouse, this could provide new opportunities for creditor protection or lower taxes. The boosted estate value could also inspire changes in how your assets will be allocated.
These are just a few of the personal and financial circumstances that require regular revision of your estate plan with an estate planning attorney in Corona.
Illness or Injury
If a serious illness befalls you or a loved one, you should think about adjusting your estate plan to highlight their amplified needs.
What Should be Covered by a Comprehensive Revised Estate Plan
• Make effective plans for circumstances like entering a nursing home and for Medicaid impacting your financial needs.
• Appoint a designee to manage your affairs in the event of incapacitation, disability or your passing.
• Protect children from prior marriages in the event you die before your current spouse.
• Avoid probate before and after you pass away. The costs associated with probate can be considerable and the probate process can be quite time-consuming.
• Safeguard assets inherited by your beneficiaries from claims against them such as lawsuits and divorces.
• Make provision for children or grandchildren who are in special circumstances or have special needs.
• Make sure that a particular portion of the estate is left to charities, grandchildren or other organizations or individuals besides your direct heirs.
• Address the needs of each child, if required.
• Protect a part of your estate if you die and the remaining spouse marries again.
• Devise a family estate plan for blended families that will provide for all children based on your intentions and desires.
• Make provision for the education of your offspring; for instance, many plans stipulate that a part of the inheritance must be utilized to defray costs of college tuition.
If significant financial or personal changes come about, your estate plan should be revised with a knowledgeable and experienced estate planning lawyer to ensure incorporation of those changes. If there has been no change in your personal situation, you still need to periodically conduct a revision with your lawyer. This time should be spent evaluating how state or federal laws will impact the provisions of your plan.
Life is dynamic and full of changes and as such, your estate plan should be revised, whenever necessary, to reflect those changes.