There are many reasons you should plan to review your estate plan on a regular basis to keep it current, but the overriding reason is that life is always changing and you have to keep pace to protect your assets, your future, and your loved ones. At Borakove Osman LLC, our Wisconsin estate planning attorneys are well aware that an estate plan is only as valuable as its most recent update.
Whether you never got around to planning for your future or have an existing estate plan you haven’t looked at for years, now is the time to contact us to safeguard yourself and your family.
This blog is designed to help you understand the complex reasons for reviewing your estate plan and altering it as needed, as well as to remind you of the documents and strategies that may require revision as your circumstances change.
Changes in the Composition of Your Family
Even in the most stable families, changes occur as time passes.
Births, Adoptions, and Child-Related Issues
The happy arrival of a new child, whether by birth or adoption, fundamentally alters
family structure and may require:
- Changes to your will in terms of guardianship
- Increased life insurance
- Trust arrangements to provide for the child’s future
Also, if your child arrives with or develops special needs, you may want to consider starting a Special Needs Trust (SNT) to ensure that your child will have the benefit of supplemental funds without jeopardizing their eligibility for government benefits.
Marriages, Divorces, and Remarriages
Changes in marital status impact beneficiary designations and most often require modifications of your:
- Power of attorney
- Beneficiary designations on life insurance, retirement accounts
- Distribution of your estate
All kinds of alterations may be necessary. For instance, though a divorce will probably require deleting a beneficiary, a second marriage that results in a blended family may necessitate adding one.
Deaths
The passing of a loved one who was named in your estate plan requires adjustments to beneficiaries and a distribution plan that reflects your current circumstances. The death of a significant person in your life may also affect your plan in other ways. For example, you may have to decide on a new guardian for your children, a new personal representative (executor), or a new trustee.
Milestones: Graduations, Retirement, Moves In or Out of the Household
Significant life events like those mentioned may, depending on the particular circumstances, prompt a reevaluation of retirement accounts, insurance policies, and asset distribution strategies.
You may want to tap saved resources for a retirement home, fund the graduate’s further education, or provide them with a car. If a parent is moving into your home or a newly adult child has become self-supporting and is moving out, this will also impact not only your living situation but your finances.
Financial Changes
There are several ways your financial circumstances may change, either according to plan or as a complete surprise:
- You may purchase or sell your home
- You may acquire another piece of property
- You may receive a sizable inheritance or other unexpected windfall
- You may lose a job or land a new one with a higher salary
- You may lose money on a bad investment or due to a scam
- You may sell your business at a great profit
Any of these events may require small or large changes to your various financial accounts and/or to your estate plan documents.
In addition, you should remember that inheritance and tax laws may change over the years, so it is essential to be informed of any relevant alterations in state or federal law. You can count on Borakove Osman to keep you posted about any changes to estate tax liability or trust structures and to help you implement innovative strategies to maximize benefits and minimize tax implications.
Health and Incapacity Considerations
Though most people don’t want to think about changes in health status unless they are beneficial ones, it is only realistic to consider what will happen if you become seriously ill or suffer a severe injury. If such a situation arises, you will be glad you have taken the steps to create the following documents and address the relevant issues:
- Health Care Proxy to appoint a person you trust to make medical decisions on your behalf if you are unable to communicate your wishes.
- Durable Power of Attorney to make sure you have given someone trustworthy the ability to take care of your financial and legal affairs if you become unable to do so.
- Long-Term Care Planning to ensure that if a catastrophic medical condition or event necessitates extended nursing care or ongoing assistance, you will be able to preserve your assets while remaining eligible for Medicaid.
Why Choose Borakove Osman for Your Estate Planning Updates?
At Borakove Osman LLC, we understand that life is full of change and challenges, and your estate plan must evolve accordingly. With our extensive experience in estate planning and our ongoing commitment to customized service, we are here to help you update your estate plan with confidence.
Contact Our Experienced Madison & Dane County Estate Planning Attorneys Today
Updating your estate planning is not just about legal compliance; it’s about ensuring your wishes are followed, and your loved ones are protected, even when the unexpected occurs. Partnering with Borakove Osman LLC will provide you with the peace of mind of knowing that your estate plan is up-to-date and aligned with your current circumstances. Contact us today to consult with one of our caring and capable professionals.
Borakove Osman, LLC is your trusted partner for estate planning for young families in Wisconsin. Serving all of Wisconsin, including Madison and Dane County, we are dedicated to providing high-quality legal advice and representation to help you secure your family’s future.