Good Reasons to Regularly Review an Estate Plan
An estate plan is not something that a person wants to create and then forget about for years or decades at a time. This is because changes to tax laws or a life event such as a marriage or divorce could make certain provisions more or less effective at meeting a person’s estate planning needs. Let’s take a closer look at some of the benefits of an annual estate plan review.
Keep an Eye on Beneficiary Designations
When a person is listed as the beneficiary of an asset such as a house, car or other item, he or she will receive it no matter what a will or trust says. Therefore, it is important that a beneficiary designation truly reflects who an individual wants to receive a given piece of property. In many cases, a spouse is designated as the beneficiary of an IRA or bank account. However, after a divorce, an individual may want to make a child or a charitable organization the beneficiary instead.
Tax Laws Could Make Certain Plan Provisions Obsolete
If tax laws change, certain plan documents or provisions within those document may be unnecessary or obsolete. For instance, if the federal estate tax exemption increases, it may not be necessary to put as many assets into a trust to reduce how much an estate may be worth. In the event that estate taxes are eliminated altogether, it may alter how a person chooses to allocate assets or how they are to be transferred when he or she passes away.
What Happens If Changes Are Necessary?
If an individual does need to make changes to an estate plan, an estate planning lawyer in Las Vegas may be able to help make them. It may also be possible for an attorney to review any changes an individual has made on his or her own. Consulting with legal counsel may decrease the odds of a challenge being made to a will, trust or other estate plan document.