There are Many Reasons to Update Your Estate Plan in 2022
With another year having come to an end, many Americans are looking back and taking inventory on how 2021 played out. There are many aspects of your life that can change over the course of a year, and many of them might be tied to your estate plan. Estate planning lawyers agree that this annual tradition of reflection is also a good time to update your estate plan.
5 Reasons to Update Your Estate Plan in 2022
1. Changes in Family and Friend Relationships
Families grow and shrink over time. Children grow up, get married, and start families of their own. Other people can also come into your life who have helped you through especially difficult times, such as a death or divorce. As a result of one or more of these events, you may decide you need to reflect new beneficiaries.
2. Changes in Business Relationships
As a business owner, the way you do business may have changed over the last year. You may have had to leave some relationships behind and embrace others. The person you thought you could turn to in the event of a health concern may not be around anymore. An updated estate plan can help resolve this issue.
3. Changes to Your Health
Your healthcare is vital as you enjoy your golden years. Outlining how you want to be treated and the level of healthcare you feel you deserve can be detailed in a durable healthcare power of attorney for healthcare decisions. This is a vital document and a necessary step to a comprehensive estate plan. It specifically names the person you want to step in and speak for you in the event you can’t speak for yourself regarding your healthcare decisions.
4. State and Federal Law Changes
The amount of money your beneficiaries pay in taxes, and at what time, is dictated by federal and state laws. These laws regularly change. It is highly recommended to consult with a financial professional to ensure your heirs don’t pay more in taxes than they need to.
5. Asset Changes
Substantial positive and negative changes to your assets will dictate the amount of money that your heirs will receive. Large changes in your assets should be considered when updating your estate plan including change in the overall asset value and acquisition or sale of a significant asset. It’s a good idea to update your estate plan to reflect these changes.
Small details can have a big impact on probate. One typo on an address could have your heirs tied up in court for years. The time they spend on legal fees could reduce your estate substantially.
LeAnn Schumann has the Knowledge to Update Your Estate Plan
LeAnn Schumann has the expertise to ensure an accurate set of documents that reflect your unique wishes. She is available to serve the people of Reno, Sparks, Carson City, Fallon, Fernley, Dayton, Yerington, Douglas County, and all other Northern NV rural counties.
Update Your Estate Plan in 2022