I spent my 20s mismanaging my money, and came to regret all of those impulse purchases placed on credit cards when my credit score plummeted due to missing a few payments. I didn't learn how much this would affect my life until I was denied for both an auto loan and mortgage in the same year due to my bad credit score. I spent the next few years cleaning up my credit report and putting every extra penny I had toward old debts. Having to put my impulse spending on halt was difficult at first, but it was a great learning experience and I now realize how rewarding saving and investing money really can be. I have put a lot of research into good money management techniques, so I decided to start a blog to share what I have learned with anyone who needs help!
You might be surprised at how quickly time passes and how many life events can occur in a short amount of time. After you have completed your estate plan, speak with your estate attorney about the need to update the plan every once in a while. To get a better idea of what milestones might trigger a need for making a change in your estate plan, read on.
Tax Changes
All good estate plans take into account taxation and the effect it has on your investments and holdings. Every so often, the IRS makes changes to the tax code. That means that a review of your plan that focuses on any tax changes should be scheduled at least once a year. You will want to ensure that your plan addresses ways to keep your investments and your inheritances at a minimum tax liability if at all possible.
Moves
In most cases, you will need to have your estate plan reevaluated when you move to a new and different state. Some estate provisions are not affected by state law, but most probate and will provisions are highly dependent on your state of residence. A move could very well alter your state tax situation as well.
Family
If your trust, deeds, powers of attorney, or will addresses specific members of your family, you may want to speak to your estate attorney after any major change like the ones below. For example, if your daughter and son-in-law are now divorced, you might want to rethink leaving him your fishing boat. Some of the changes that should spur another look include:
Another aspect of families and advance planning are that your priorities may be changing as your children and grandchildren get older. For example, you might not have felt a need to address a college education when your child was younger, but it now addressing that issue seems more important to you.
Property Changes
Whenever you part with a major piece of property, you should see your attorney. Deeds, trusts, and wills can be affected when you sell or purchase a new piece of real estate. In fact, any item that costs a considerable amount of money should be addressed when bought, sold, or transferred and that includes investment accounts, bank accounts, jewelry, art, vehicles, boats, and more.
See an estate planning attorney to learn more about updating your plan.
Share6 March 2019
