Updating Your Estate Plan When Your Finances Change

Jakob Legal - Elder Law

Sometimes homes and portfolios lose value or income and investments increase significantly. If this is the case for you, do you need to change your will? If your finances have changed markedly since you wrote your will, you should check your estate plan to see if you need to make any changes.

If your will or estate plan divides your estate into percentages for beneficiaries, then changes in value won’t affect how your estate is distributed. However, if you include specific bequests in your will, a fall or rise in your estate could have consequences. For example, if your estate plan gives $50,000 to your favorite charity and the rest of your estate to your children, a reduction in the value of your estate could mean your children won’t get as much as you intended.

A change in value of assets could also affect your estate plan if you intended to treat your children equally by giving them assets of equal value. For example, suppose your will gives your house worth $500,000 to your daughter and your stock worth $500,000 to your son. If the value of either the house or the stock portfolio increases or decreases significantly in value, your children will no longer receive equal gifts. It is also important to update your estate plan if the overall nature of your assets has changed. For example, if you sold the stock and bought real estate instead, this will affect the distributions to your children.

In addition, if your estate has significantly increased in value, it is important to reassess whether your estate will be subject to estate taxes. In 2019, estates worth more than $11.4 million for individuals and $22.8 million for couples are subject to estate tax. Most estates are not subject to federal estate tax, but some state tax smaller estates. It is important to be prepared for any eventuality.

Contact Andrea to have her help you be prepared for any eventuality or update your estate plan.

Share:

Share on facebook
Share on twitter
Share on linkedin

More Posts

Jakob Legal - Elder Law

New Law to Protect the Elderly!

This bill would protect seniors and disabled individuals in many ways:

It prohibits a person who commits a number of offenses on an elderly or disabled person in any state or jurisdiction from serving as a personal representative or inheriting from the victim’s estate, trust, or other beneficiary assets.

The Law will also expand the definition of exploitation of an elderly or disabled person to include breach of fiduciary duty resulting in a kickback or receipt of an improper benefit.

Davie Alzheimer's Lawyer

Alzheimers

“Among the challenges are moments of joy.” Some of the terrific information contained in the site includes “life with Dementia”, Taking Action, Clinical Trials, Caregiver information, etc….

Alzheimers.gov is managed by the National Institute on Aging (NIA) at the National Institutes of Health (NIH)

Scams and Schemes

Protect Yourself from Fraud

Whether it’s guilting you into investing, instilling fear in you, or giving you the impression that they are professionals, con artists know exactly how to persuade you. Don’t rush yourself and don’t allow others to rush you. Take your time when making investment decisions, remain skeptical of unsolicited offers or offers that seem like they are too good to be true, and be sure that your money is always accessible.

Couple with Power of Attorney in cloudy countryside

Understanding the Four C’s of Elder Law Ethics

There are several reasons why lawyers need to meet with your family member or friend alone for at least a part of the case evaluation process, so please don’t be alarmed or offended if you are asked to leave the room.

Please Contact Me

Skip to content