Whenever you have assets and heirs to protect, an estate plan is a highly effective tool to get the job done. If you are among the many savvy homeowners, investors and heads of households in California who have accrued assets and have established estate plans, you are ahead of many. But you need to do more by regularly reviewing your estate planning and making sensible adjustments as needed. The following are some of the more common reasons why you need to regularly update your current estate planning.
Changes in family
Your family might grow through a traditional wedding and family unit. The addition of more children or an eventual divorce and other life events all can make significant changes to your family structure. As those changes occur, your estate planning needs also may change and require adjustments.
Changes in assets
Many people who get married and raise families have homes that are their most valuable assets. Buying a new house to house a growing family is a significant change in one’s life. Someone who founds a business and makes it thrive could have many important assets added to an estate that did not exist when making an initial estate plan. Any significant change in assets triggers a need to update your estate planning.
Changes in tax laws
Protecting assets and reducing tax liabilities is a big reason many people initially start an estate plan. Federal, state and local tax laws change constantly and require you to make regular updates to ensure the most efficient protection for your estate. If you ignore the impact of changing tax laws, you might wind up losing a significant portion of some of your assets. Constant attention to changes in taxes and other state and federal laws that might impact your estate helps to protect it over the long run.
An experienced estate planning attorney can help you to stay abreast of any California or federal laws that might impact your estate. Whenever changes occur in life, an attorney makes it easier for you to make smart moves that protect your assets.