ESTATE PLANS MUST REFLECT WHERE YOU ARE NOW
You may have heard startling statistics about the number of people who have put off planning their estates. AARP polls show 60% of adults in the US do not have a will or an estate plan. In Polk County, it is believed to be an even higher percentage. However, just as high may be the number of people who make the effort to establish an estate plan, then allow decades to pass without updating those decisions.
After only a few years, it is possible that major changes have occurred in your life. Marriages begin and end, children are born and loved ones pass. Even if none of these things has happened in your life, the world around you has changed. Tax laws reflect the political climate. The laws of the State of Florida regulating estate planning documents has been changed. The stock market has been on a roller-coaster. One important thing that may be different now from when you made your plan is your view of your assets and your future.
When should you update your estate plan?
In my 30 years practicing law, I have consistently advised friends and clients to update their plan with their lawyer at the earlier of every three years of if you experience a major life change. Life events require alterations in your plan immediately:
If you have or adopt children or grandchildren
If your children or grandchildren get married or divorced
If your designated beneficiaries, executors or other agents become incapacitated, die or change their mind about their role in your estate plan
If you acquire property or a business
If you move out of or in to the State of Florida
If you have received an inheritance
If you get married or divorced.
In some states, including Florida, your will is automatically affected by a divorce, so be sure to discuss this with your attorney to prevent needless complications. On the other hand, if you got married, you wouldn't want your new spouse to be 100% excluded if your existing estate plan directs your assets in a different direction.
Although each person's estate plan has unique and personal goals, you made your plan to achieve three main purposes:
Protecting your assets
Providing for your loved ones
Designating your medical and financial care if you become incapacitated.
After years have gone by, your estate plan may no longer accomplish those goals exactly according to your wishes. Family dynamics change quickly, and even a change in business relationships may require an adjustment to your will or trust. A careful review of your documents will reveal any deficiencies.
Your attorney will also be able to inform you of any estate planning tools you haven't taken advantage of to maximize the transfer of your wealth and minimize any tax burdens. Having an attorney will save you time and money in this area. Your attorney will be able to address your estate planning needs, as well as assess your tax risk and advise you on how best to meet your financial goals.
Please reach out to us at 141 5th Street NW, Suite 300, Winter Haven, Florida 33881 at 863.294.1114.
Established in 1991, Rignanese & Associates is available to work with clients on their legal needs.
On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC, which has been acquired by Rignanese & Associates, PLLC.