The new year is only a few months away, and that might mean it is time to update your estate plan. It is often suggested that estate plans are updated every three to five years. However, many people do not know what changes they might make to their estate plan.
For a lot of people, the only change they might need to make is adding newly acquired assets to their will. However, there are a few other aspects of your estate plan you might need to change. Here is what you should know:
1. Add extra asset protection
If you only have a will, then your estate could be exposed to disputes. This issue could be costly for your estate and beneficiaries if someone challenges your will. One way to protect your assets is by making a trust. With the right trust, you can make informed decisions to protect your assets from disputes.
2. Rename your power of attorney
You may have named a power of attorney in your estate plan. A power of attorney can act on your behalf if you become incapacitated and can not care for yourself. However, you may believe that your power of attorney may not act in your best interests, such as if your agent is an ex-spouse or former friend. You may need to update your power of attorney in your estate plan.
3. Consider estate taxes
You may have a sizable estate. As a result, your estate could be heavily taxed. You may need to learn about how much your estate could be taxed and consider your options to avoid serious taxes.
You may need to talk to someone who has experience in estate planning. You can reach out for legal guidance today.