Believe it or not, 2020 is right around the corner. What better time to get your estate plan in order? Many people know they need an estate plan, but they put it off or forget about it. Others are just unsure of how to start the process. But anything can change in the blink of an eye.
So the big questions are: Have you started building your estate plan? Does it need to be completed? Does your existing plan require a quick update? Many people need to update their estate plans each year. Read on to find out why.
1. Reflect on All of the Changes That Happened Over the Year
Some people may have experienced significant changes this year, such as the birth of a new child or a marriage. Perhaps you moved to a new state or started a new job. Major life events often trigger a need to adjust your estate plan. They can also provide extra motivation to start an estate plan for the first time. For example, the birth of a new family member may mean that parents and grandparents need to adjust their estate planning to include the new addition. New parents may also want to ensure that they have a guardian named for their child.
2. Changes in Tax Laws
Tax laws change slightly every year, and some changes can have an effect on your estate planning. That has never been more true for 2019. State and local law changes may also trigger a need for a change in your plan as well. With the significant federal tax changes that affect everyone, it’s especially important for you to have a consultation with an attorney as soon as possible to update or create your estate plan to adjust to these new changes.
3. Long-Term Care Adjustments
If you are planning for long-term care as a part of your estate plan (and you most definitely should!), you need to adjust your strategy periodically as your needs change. Planning for Medicare can be tricky as well, and laws affecting Medicare planning are modified every year. The overall health of you and your spouse will also change as the years progress. A yearly “check-up” in this area is a good idea.
4. New Insurance Policies or Retirement Plans
You may not realize it, but insurance plans play a significant role in your estate planning. If you started a new retirement savings plan or health or life insurance policy this year, it is an excellent time to talk to your attorney about how to properly use this tool as a part of your estate plan.
If you need to update your plan or you are just getting started, now is a great time to review and plan for the future. Rosen Law, LLC is a useful resource for your estate planning needs. Contact us for more information or to schedule your consultation.