Planning for the New Year
The start of a new year is the perfect time to consider reviewing your estate plan.
As the previous year comes to an end, it is only natural to look back and reflect. Was it a good year? Was it a bad year? Usually the answer depends on the events which occurred during the year, and whether the bulk of those events were positive or negative.
For instance, if you were married or remarried, had a child or a grandchild, then yours was probably a great 2016. On the other hand, if you got divorced or lost a family member, yours was probably a horrible year. In either case, the aforementioned events (great or horrible) are significant enough to be reflected in your planning.
Aside from being a major life event, buying a home is another reason to update estate planning. As is, re-financing, or selling a home.
Other occurrences which warrant updating include changes in your health, opening new bank accounts, starting or closing a business.
In addition to reflecting on the events which transpired during the year, you should ask yourself, are you, at this stage in your life, still happy with the choices you made as to who will serve as trustee or executor? Are you still happy with the person chosen to handle your financial affairs should you become incapacitated, and/or the person chosen to make your health care decisions?
If you have young children, are you still happy with the person you chose to serve as their guardian or guardians?
If you are still comfortable with your previous choices, and even if you didn’t experience any major life events, you should still consider taking your plan to your attorney for a review. Your attorney can advise whether there have been any changes in the tax laws since your last update; and if so, whether those changes affect your planning.
The start of a new year is a natural time for looking back and planning ahead. When better to give thought to your estate planning needs?
