Why Should I Change My Estate Plan?
Congratulations on doing something important that many fail to do – you met with an attorney and created an estate plan. For most people, that shouldn’t be the end of the story. There are many moving parts to a comprehensive estate plan, which plans for your assets after you pass away or during a period of incapacity. Over time, some aspects may change, or you may have new or different objectives.
If you or someone you know needs to change or update their estate planning in Nevada, whether in Las Vegas, Henderson, Reno, or Carson City, call our estate planning attorneys at 702-333-1711.
An estate plan is like a house. Over time you buy new furniture, paint rooms different colors, renovate, or add to it. What you want and need from your home changes over time. The same is true with an estate plan. For example:
- What was an important priority five years ago, may no longer be a priority to you
- Children may have grown into adults, meaning your objectives for how to transfer property to them or their involvement in your estate plan as trustees, executors and/or agents may have changed
- You may have experienced a significant increase in wealth, prompting you to consider tax planning more carefully or making gifts to charity
There are countless reasons to change estate plans, but yours are unique.
Life Changes and Circumstances Evolve
Life is full of changes, both expected and unexpected. Marriage, divorce, births, deaths, and changes in financial status are just a few examples of life events that can significantly impact your estate plan.
Significant changes in your financial situation, like acquiring new assets, starting a business, or receiving a substantial inheritance, may necessitate revisions to your estate plan.
Updating your plan allows you to address these changes and ensure your wealth is managed and distributed appropriately. Failing to do so can result in assets being distributed in a manner that made sense prior to the life event, but no longer makes sense now. By regularly updating your estate plan, you can ensure that it accurately reflects your current circumstances and priorities.
If you have a living will, healthcare power of attorney, or other documents outlining your healthcare wishes, periodically reviewing and updating them is essential. Your views on medical treatment or end-of-life care may change, and the individuals you want involved in those types of decisions may change. Updating your estate plan ensures that your wishes regarding healthcare are up-to-date.
If you or a close family member become disabled due to an accident or illness, you may want to make changes so the person qualifies for government assistance.
Changes in Family Dynamics
Family dynamics evolve, and relationships change for better or for worse. You may have named a sibling or a close friend as a beneficiary or fiduciary (e.g., executor or trustee) in your estate plan, but now your relationship with them is strained, or perhaps they are no longer in the best position to fill such a within your estate plan. Similarly, you may want to include new family members, such as stepchildren or grandchildren, in your plan.
Getting divorced is a common reason to change estate plans. A divorce agreement or court order may require you to update your plans due to a division of assets, and/or spousal or child support issues. If you remarry, your estate plans should change again to reflect your new relationship. You should discuss your estate plans with your future spouse and consider estate planning as part of any pre- or postnuptial agreement.
Updating your estate plan can address these changes, ensuring your assets are distributed according to your current wishes, and preventing potential conflicts among family members.
Laws Change
The rules of the estate planning landscape may change over time. Your plan may have fit within those rules well when it was created, but new legislation or court decisions may impact how your estate plan is interpreted and implemented. Failing to update your estate plan might result in unintended consequences or missed opportunities for tax savings.
The Only Thing That’s Permanent is Change
Updating your estate plan is crucial to confirm your wishes, protect your assets, adapt to changes in personal and financial circumstances, and ensure your goals are achieved under current law. Consult with an experienced LKP estate planning attorney to assist you in reviewing and updating your estate plan based on your specific needs and the current laws.
Contact a Las Vegas Estate Planning Attorney
LKP attorneys are highly experienced lawyers in Las Vegas who plan estates for clients throughout Nevada. We also update these plans to reflect our clients’ changed circumstances and needs. If you want to discuss revising your estate plan, or if you already know it’s time for a change, contact LKP for a free consultation using our online contact form or call us at 702-333-1711 today.
Attorney Kennedy Lee practices in all aspects of trust and estate law. He views all legal issues from multiple angles (e.g. from litigation to administration point of view) to provide a higher quality of service to our client.
