As the year draws to a close, many of us turn our attention to holiday preparations and New Year’s resolutions. However, amidst this jolly time, it’s also a remarkable opportunity to consider reviewing your estate plan. Rather than just another item on your year-end checklist, approaching your estate plan now can offer significant benefits, ensuring your wishes are up-to-date and your loved ones are safeguarded for the coming year and beyond. Please continue reading as we explore what you should know about these matters and how a dedicated Rockland County Estate Planning Attorney can assist you with updating your estate plan. 

Why is Year-End a Smart Time to Review Your Estate Plan in New York?

In New York, conducting a review of your estate plan at the end of the year is prudent to determine whether the terms you previously established accurately reflect your current circumstances after a year of potential changes. This proactive method will enable you to incorporate various life events. The following are key reasons to conduct an annual review of your estate plan:

  • Significant Life Changes: This may encompass events such as marriage, divorce, the birth of children or grandchildren, or the passing of a loved one.
  • Financial Changes: The acquisition of valuable assets, receipt of a substantial inheritance, drastic changes in income, or the buying or selling of property could have implications for your estate plan.
  • Legal and Regulatory Changes: Tax laws and other regulations are subject to frequent modification, necessitating your estate plan’s compliance with current requirements.
  • Beneficiary Designations: It’s essential to reassess the names of your designated beneficiaries, executors, and trustees to ensure their continued suitability and capability.
  • Tax Planning: A year-end review facilitates the identification of advantageous tax strategies and gifting opportunities that must be executed before the year draws to a close.

To maintain the effectiveness of your estate plan and ensure the protection of your hard-earned assets, it’s imperative to make periodic adjustments.

What Happens If I Don’t Update My Estate Plan?

When an estate plan is not updated, it can lead to unintended consequences. An outdated will can result in your assets being distributed to the wrong people. It may provide bequests to individuals you are no longer in contact with, or you may leave out new heirs. Additionally, outdated plans can result in an increased tax burden. An attorney can assist you in leveraging current tax laws to minimize the impact of estate or capital gain taxes on the inheritance you leave your beneficiaries. An outdated estate plan can also complicate and delay the probate process.

As you can see, an estate plan should not be a “set it and forget it” document, but rather a living framework that should be modified as your circumstances and relevant laws change. At The Lauterbach Law Firm, we are prepared to help you make necessary revisions. Connect with our firm today to schedule a consultation.