Estate planning is a critical aspect of financial planning that enables individuals like you to protect your assets and ensure that your wishes are respected in the event of your future incapacity or death. Estate planning involves the creation of a plan that outlines the distribution of your assets, the management of your financial affairs, and the care of your dependents. It provides peace of mind for you and your family, as it helps ensure that your wishes are respected and that your assets are protected for your family. However, estate planning is not a one-time event. As your life changes, it is essential to update your estate plan to ensure that it remains relevant and effective in protecting your assets and accomplishing your goals. This blog focuses on the importance of updating your Maryland estate plan.
Changes in Family Structure
Family dynamics can change over time, and it is important to update your estate plan to reflect these changes. Marriage, divorce, the birth of a child, or the death of a spouse can all have a significant impact on your estate plan. For example, if you get married, you may want to add your spouse to your estate plan as a beneficiary, or if you divorce, you may want to remove your former spouse from your estate plan. Similarly, the birth or adoption of a child may require you to add them to your estate plan or to make changes to your plan to accommodate their needs. Additionally, you may need to update your estate plan if the named guardians of your children have become unable to care for your children.
Update of Assets
As your financial situation changes, so too should your estate plan. Regularly updating your estate plan can help ensure that your assets are distributed according to your current wishes, and that your beneficiaries are protected. If you experience a significant change in your assets, such as a new investment, the sale of a property, or the receipt of an inheritance, it is important to update your estate plan to ensure that your assets are distributed according to your wishes.
New Laws and Regulations
Over time, estate planning laws can change, and it is essential to stay up to date with these changes. Failing to update your estate plan in response to changes in the law could result in unintended consequences, such as taxes and other expenses that could have been avoided. Regularly reviewing your estate plan with a Maryland estate planning attorney can help ensure that your plan remains compliant with the latest laws and regulations.
If you experience a significant change in your health, such as a serious illness or disability, it is important to update your estate plan to ensure that your assets are protected and that your wishes are respected if you become unable to make decisions for yourself. For example, you may need to appoint a financial power of attorney, a medical power attorney, or you may need to create a living will to ensure that your wishes regarding medical treatment are respected. However, be sure not to wait too long to make these revisions because if you become incompetent, the revisions could be determined to be invalid. Updating your estate plan to accommodate changes in your health can help ensure that your assets are protected and that your wishes are respected if you become unable to make decisions for yourself.
If you have recently relocated to Maryland from another state, it is also important to update your estate plan because the laws concerning estate planning are often state specific and may no longer be valid once you have relocated. Additionally, there may be differences in tax issues that need to be taken into consideration. Moving to another state is a good time to update your estate plan.
We hope this blog helped you understand the importance of updating your Maryland estate plan. If you need to update your estate plan, contact a Maryland estate planning attorney with Jacobson Family Law at 443-741-1147 or schedule a consultation today.