by Susan M. Graham, Certified Elder Law Attorney, Senior Edge Legal, Boise, Idaho.
It’s a new year and a fresh start –
You set up your estate plan a while ago. At that time, it was up-to-date. Is it still current? Have there been events that lead to a need to revise or update your plan? The following 8 events frequently require a fresh look to consider changes to your plan.
- New Family Members. If you have new children and grandchildren who are born after your plan was signed, the new family members may not receive a full share or any share of your estate.
- Moved to a New State. Many people relocated for lots of reasons during the Covid pandemic. If you moved to a different state, you may want to consult with a local attorney to discuss at a minimum the inheritance taxes, as many states have an inheritance tax if the value of the estate exceeds $1 million. In addition, each state has their own preferred forms for health and financial powers of attorney, so these may need to be updated.
- Sell or Buy a Major Asset. Does your plan state a specific asset, maybe a cabin, goes to just one of your three children and the rest of your estate divided equally between the remaining two children? What if that cabin has been sold? Now what? Does that child who was to receive the cabin get nothing? Is that what you want?
- Your Named Beneficiary Died. If they predecease you, who will get that share?
- Divorce, Marriage, Second Marriage. If a named beneficiary had a change in marital status, does that impact your estate plan? What if that beneficiary dies before you do, who will receive that share, the old spouse or a new spouse?
- Large Change in Value. Perhaps your plan stated the family cabin goes to your oldest child, and the rest is divided equally between your other three children. At the time you created the plan, the end result provided that each child ends up with $500,000 in cash or the cabin. Now the cabin is worth $2,000,000 and the rest of the assets are about the same in value. Will this plan still work the way you want, or will it create resentment among your children who only receive $500,000 and the one who gets $2,000,000?
- Forget to Add a New Home to a Revocable (Living) Trust. You downsized and bought a new home more suitable for your retirement and titled the home in your individual name(s). If you have a Trust-based estate plan, owning real property outside the name of the Trust will force your estate into the probate court and take extra time and expense.
- Selected Personal Representative, Executor, Trustee, Financial Power of Attorney Agent is no longer available. Who will handle your financial affairs when you can’t if you are unable to due to illness or when you die? If you have no one, a Court Judge will step in and make that decision for you.
Check your Estate Planning documents to see is it current, or does it need small or large changes.
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Do you have a written estate plan that protects your future and your loved ones? Call to schedule a meeting with Susan Graham to give you peace of mind that your affairs are in order (phone 208-344-0375 or Contact Us on our website).
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