Top 5 Reasons to Update Your Estate Plan
#1. There have been changes in U.S. tax laws.
If you are married and you have an “A-B” trust that provides for your joint estate to be split into two trusts upon the death of the first spouse, these provisions may no longer be necessary due to changes in U.S. tax law. In fact, administering an “A-B” trust can be a burden because the surviving spouse will need to open separate bank and brokerage accounts, obtain a separate taxpayer identification number, and file two (sometimes three) separate tax returns for the rest of his or her life. Please contact us about whether an “A-B” trust is still the best plan for you or whether your trust should be updated to delete these provisions.
#2. Your trustee and power of attorney designations are out of date.
Parents with minor children will often designate a friend or relative to serve as successor trustee or agent under a power of attorney. When the children grow into mature adults, parents may want to update their estate plans to designate their adult children to take on these important jobs. In addition, if you have designated a successor trustee who has died or is no longer up to the task, your estate plan should be updated to reflect your new nominees. Please contact us about updating your successor trustee and power of attorney designations.
#3. You recently married.
Congratulations! Now, your estate plan needs to be updated. If you are relying on an estate plan enacted before your marriage, your new spouse may have rights under California law to part of your estate, even if your trust makes no mention of him or her, and even if he or she has an entirely separate trust. Contact us about updating your estate plan.
#4. You have a child going off to college.
Once a child turns 18, a parent is no longer his or her legal guardian. Should your child face a serious medical condition, you may have difficulty communicating with doctors, hospital staff, school administrators or landlords unless your child has given you the proper legal authorization. We can prepare an advance health care directive and power of attorney for your child to assure you have the necessary legal authority to make decisions during a crisis.
#5. You have acquired new assets that should be titled in the name of your trust.
Did you purchase a new home? Open a new brokerage account? If you had intended to hold these assets in your trust but they are not properly titled in the name of the trust, your successor trustee may need to obtain a court order to transfer the assets into your trust after your death. We can assist you in determining whether your assets are properly titled, and help you in re-titling the assets.
If you are married and you have an “A-B” trust that provides for your joint estate to be split into two trusts upon the death of the first spouse, these provisions may no longer be necessary due to changes in U.S. tax law. In fact, administering an “A-B” trust can be a burden because the surviving spouse will need to open separate bank and brokerage accounts, obtain a separate taxpayer identification number, and file two (sometimes three) separate tax returns for the rest of his or her life. Please contact us about whether an “A-B” trust is still the best plan for you or whether your trust should be updated to delete these provisions.
#2. Your trustee and power of attorney designations are out of date.
Parents with minor children will often designate a friend or relative to serve as successor trustee or agent under a power of attorney. When the children grow into mature adults, parents may want to update their estate plans to designate their adult children to take on these important jobs. In addition, if you have designated a successor trustee who has died or is no longer up to the task, your estate plan should be updated to reflect your new nominees. Please contact us about updating your successor trustee and power of attorney designations.
#3. You recently married.
Congratulations! Now, your estate plan needs to be updated. If you are relying on an estate plan enacted before your marriage, your new spouse may have rights under California law to part of your estate, even if your trust makes no mention of him or her, and even if he or she has an entirely separate trust. Contact us about updating your estate plan.
#4. You have a child going off to college.
Once a child turns 18, a parent is no longer his or her legal guardian. Should your child face a serious medical condition, you may have difficulty communicating with doctors, hospital staff, school administrators or landlords unless your child has given you the proper legal authorization. We can prepare an advance health care directive and power of attorney for your child to assure you have the necessary legal authority to make decisions during a crisis.
#5. You have acquired new assets that should be titled in the name of your trust.
Did you purchase a new home? Open a new brokerage account? If you had intended to hold these assets in your trust but they are not properly titled in the name of the trust, your successor trustee may need to obtain a court order to transfer the assets into your trust after your death. We can assist you in determining whether your assets are properly titled, and help you in re-titling the assets.