You shouldn’t wait for your Social Security card to arrive to create an estate plan. They should be established when you’re young and updated by an estate lawyer every few years. As life changes, you want your plan to represent your interests best.

5 Reasons to Update Your Estate Plan

1. Your Assets Changed in Value

The value of your assets will fluctuate throughout your life. If they have lost value, you may want to change how they’re currently divided. If they have increased, your estate lawyer may suggest protecting your assets by placing them in a trust to avoid probate.

2. Your Family Status is Different

When getting married or divorced, you may want to change the details of your estate plan. Naturally born and legally adopted children are automatically considered beneficiaries. However, in Arizona, grandchildren, stepchildren, and foster children aren’t. They must be named in your estate plan for them to receive any inheritance.     

3. Your Retirement Plan Is Outdated

Review your estate plan every three to five years and update it with an attorney as needed. If you have a retirement plan like a 401(k) or IRA, contact your estate lawyer before turning 70 ½. At that age, you are required by the IRS to take minimum distributions from these plans. Your attorney can review the beneficiary designations, so the right people inherit your assets.   

4. Tax Laws Have Changed

Arizona doesn’t have inheritance or estate taxes. However, your assets are still subject to federal tax laws. Estate lawyers stay updated on their many changes and nuances. They can help protect your estate and lessen your tax burden so you can continue to build your assets. 

5. You Need to Appoint a New Executor

The executor of your estate handles your finances after you’ve passed. They assess the value of your estate and distribute it to your beneficiaries in accordance to your wishes. The process is complicated and can take weeks or months to complete. If your current executor has moved out of state or you have found a more qualified candidate, a new one should be appointed.    

If you need to establish or change your estate plan, reach out to Knochel Law Offices, P.C. Their estate lawyers have provided compassionate service to the people of Bullhead City, AZ, and the Tri-State area for over 30 years. They will work with you to ensure your directives are clear and your will is carried out. For a free phone consultation, call (928) 444-1000. For more information on their wills, estate, and probate services, visit their website.