Is Estate Plan Written Before 2010? Now Is Perfect Time to Redo It
It is commonly said that “the only permanent thing is change,” which simply translates to everything changes. Yes, everything changes, and so do your wills or the laws that guide them. If you have not revisited or modified your will since 2010, then you are definitely in for a will change.
Why, you ask? Well, the laws that guide the creation and management of wills and estate plans have been modified, which means there is a good chance that your will needs a complete overhaul. So, which is it, a new will? A new estate law change?
In this article, you will learn all that you need to know to modify your will or create a new estate plan properly
Things To Note As You Change Your Estate Plan
If any of the below listed has happened to you since 2010, when you last changed or created your will, then there is a need to change it now:
- Included every member of your family that you want to be in your will
- Updated your grantors
- Acquired more assets
- Sold some assets
- Remarried
- Had more kids
- Your lawyer passed away
While there are many reasons for changing your estate plan, the major factor is that the laws that guide the creation of estate plans have been modified after 2010, which means your will is either invalid, easily contestable, or needs to be updated.
While it is true that you need to change some details of your will, you should know that not all lawyers might want to change a will that they did not initially create. This is where you will need to be patient to get the right lawyer, as it can determine the validity of your will and ensure it passes probate with ease.
What Laws and Dates Render Your Will Outdated?
If you created your estate plan after these four dates, then you need to change it as soon as possible:
April 14, 2003
On this day, the Health Insurance Portability and Accountability Act (HIPAA), law was modified. It deals with the disclosure of a patient’s health information without permission. If you are in a coma, for instance, and the hospital needs to make an important decision, there has to be a person who has a legal document authorizing them to make decisions on your behalf. If you do not change it, you may need to take extra precautionary measures to avoid mishaps.
January 1, 2005
If you reside in a state that has its own estate tax, then you might need to modify your estate plan. Due to the interference of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), it is now mandatory to know how much your state charges for tax.
December 17, 2010
The TRA of 2010 increased the federal estate tax to 5 million for 2010 and indexed it for inflation after. If your plan was created before 2010, your document is bound to contain some tax provisions that have been removed.
However, if you reside in a state that possesses its own estate or inheritance tax, then you might be able to negotiate a lower settlement than most, especially as they are lower at the beginning. Having an outdated estate planning document can cause you to go bankrupt.
Also Read: Carbon Programming Language: An Experimental Successor to C++
Conclusion
“Having an updated estate plan is one of the best things that can help you, as it will ensure that your assets are well managed and, in your absence, get to your desired beneficiaries,” says attorney Samah T. Abukhodeir. To ensure this is done, you may need the services of a professional estate attorney to help you or guide you through the process.
