5 Reasons for You to Update Your Living Trust
When you have finally settled down on the couch after that meeting with your attorney, the last thing you want to talk about it updating your living trust. We know what you’re thinking. It’s hard enough getting around to creating an estate plan the first time around. Why would anyone want to renew it?
Well, instead of updating the plan every 5 or 10 years for no reason, we suggest updating it when there’s any big change coming in your life. Whether it’s a new baby or a new house, your previous estate plan does not include them as it should.
So what other reasons could you have for estate planning in Queens? Here are 5 signs it’s about time you get started!
1. An Update in the Law
Despite what you may thing, the law is not set in stone. Every government revises laws to suit the people better and property law is no exception. In 2017 for instance, a new tax law was passed by the congress which was the biggest reform in the previous three decades! A bunch factors, such as income tax return rates, tax brackets, and deductions.
The most significant change was that the tax exemption on estate was raised to $11.2 million per person. This means that you or your loved ones won’t pay any taxes on it if it’s lower or equal to that. For married couples, the combined value is $2.4 million.
So if you haven’t updated your estate plan in the last three years, it could benefit from this new law— especially if you had planned to give a portion away to keep your estate under a bracket.
2. A Change in Relationship Status
Did you just get married to the love of your life? Or did you finally decide to leave a marriage that wasn’t working out? Whatever the change in relationship status, it is important to take that as a prompt to update your estate plan. If you don’t, you run the risk of your new spouse not receiving their due share of your property, or your ex getting your entire estate. You really don’t want that to happen.
This isn’t limited to just estate plans. In fact, you should update your legal documents, bank account details, and property deed posthaste. It may not be romantic, but it’s extremely necessary for a new couple to redraft their papers. Find a lawyer who does estate planning in Queens and get down to business.
3. Financial Ups and Downs
As the world economy goes through ups and downs, so does your wealth and net worth. The current atmosphere is good for business, but we never know how long it will stay like this. Whenever there is a significant increase or decrease in your total estate, it’s time to call your estate planning attorney in Queens and set up a meeting!
For instance, let’s say you wanted to give a portion out of your million dollar assets to your favorite charity cause. The rest of it was to be divided between your three daughters. So what if the million you had counted on is only half of what it was before? Your daughters could be left with less cash on hand than you had previously hoped! This is why updating is recommended when any change in assets occurs.
4. Having a Child or Grandchild
It’s amazing to become a parent to a beautiful gurgling baby who loves you—and it’s even better to be a grandparent. If you too have a new member in the family, it only makes sense to look into your current estate plan. What will happen to your child if you and your spouse are no longer around? It may seem dark and it’s the last question you want to ask yourself, but you are the only one who can make these decisions to safeguard your child’s future.
If you are a grandparent, some estate plans already have provisions made for future grandchildren. But if you would like to leave something particular to each grandchild or leave something extra for your favorite one, an attorney can help.
5. A Death in the Family
It’s not a possibility any of us want to consider, but we are human and all mortal. During the course of your life, if your spouse or any other family member passes on, going back to the estate plan should be on your list. You could be feeling lost or unsure about things, but that’s where your lawyer comes in.
This is not just about property and inheritance. You hand over the power of attorney to make medical decisions to your spouse as well. If they are gone, you must make sure there is someone else you trust to make decisions on your behalf.
Other details such as beneficiary and insurance policy changes should be considered to protect your own heirs from losing benefits.
An estate planning attorney in Queens can guide you well regarding any changes you may need in your trust. But at the end of the day, it is your estate and you decide what you want to do with it.