We are turning the page on the most unusual year that most of us have ever experienced, and the best thing many can say about it is good riddance. Fortunately, the future looks considerably brighter as we turn the page and welcome the new year.
During this transition from one year to the next, people make resolutions of various different kinds. As an estate planning firm, we encourage you to work with us to review your existing plan because revisions may be necessary if it was established years ago.
Changes in Family Dynamic
Time does not stand still, and circumstances can change over the years. There may have been additions to your family, and people that would have played a role in your estate plan may have passed away. And of course, changes in marital status are common.
A lot of people know that they should update certain details, but they procrastinate. When you drag your feet, you are taking a risk; and you never know what the future holds.
We read about high-profile people passing away unexpectedly all the time, and these tragedies impact many ordinary families. You should always keep your estate plan up to date to reflect your family situation.
Financial Status
If things go well for you financially, the estate plan that you put in place decades ago may not reflect your current circumstances. The federal estate tax is applicable on transfers that exceed $11.7 million in 2020 so this is no longer a source of concern for most people.
However, there are other considerations. For example, you may be in a position to establish a trust that will remain intact for an extended period of time.
One of your adult children may not be a good money manager, and there are steps you can take to provide spendthrift protections. If you originally planned your estate when this child was a youngster, you would have had no way of seeing into the future.
When you are in a different financial place, your plan should be adjusted to take full advantage of your opportunity to pass along a meaningful legacy.
Changes to Relevant Laws
As a layperson, you are simply not going to keep a finger on the pulse of legislative measures that impact aspects of the estate planning process. At the same time, new laws are often passed, and there are changes to existing statutes.
For example, the estate tax exclusion was $675,000 in 2001, and it has changed seven times since then.
Your original estate plan was based on a snapshot of your life and the laws that existed at that time so it can become obsolete when things change over the years.
Create Your First Estate Plan
We have been focusing on estate plan reviews to this point, but you should definitely resolve to put an estate plan in place if you are completely unprepared. Every self-supporting adult should have a plan in place, and it becomes an absolute must when family members are depending on you.
Take Action Today!
As you can see, action is required if you have not looked at your estate plan in decades, and we can help you establish your initial plan if have made no preparations at all.
We know it can be a bit disconcerting to discuss these personal matters with someone that you have just met, but you can set those concerns aside. When you work with our firm, we will make you feel completely comfortable every step of the way.
Our objective is to work with you to devise a custom-crafted plan that is ideal for you and your family so you can go forward with peace of mind.
You can schedule a consultation at our office in Charlotte, North Carolina or Huntersville, North Carolina if you give us a call at 704-944-3245. The number in Ashland, Kentucky is 606-324-5516, and the number in Florence, Kentucky is 859-372-6655. You can also fill out our contact form if you would prefer to send us a message.
- 2022 Estate Tax Exclusion Has Been Set - December 6, 2021
- An Overview of 2022 Medicare Cost Increases - November 24, 2021
- Elder Financial Abuse Is a Looming Threat - November 22, 2021
