What Every Attorney Needs to Know About Estate Planning

When people get married, they need to update their estate plans. This includes things like beneficiary designations on retirement accounts and life insurance. If someone dies without updating their estate plan after getting married, their spouse may be entitled to a certain amount of their estate, even if it doesn’t match what the deceased wanted. It’s important to make sure your estate plan reflects your current situation, especially after major life events like getting married. If you have a lot of money, you might want to consider a prenuptial or postnuptial agreement to figure out what happens if you get divorced or one of you dies. You should also think about how to minimize estate taxes as a married couple. When you have a baby, you should update your estate plan to make sure your child is taken care of if something happens to you. And if you’re getting a divorce, you should update your estate plan and other legal documents to make sure your ex-spouse and kids are still taken care of. Life insurance is a big deal when it comes to passing on money after someone dies. But a lot of people don’t realize that they can avoid some taxes and make things easier for their family by setting up a trust and naming it as the beneficiary of the insurance. It’s a good idea to talk to a lawyer who knows about this stuff before you buy life insurance.

If you suddenly come into a lot of money, like from selling a business or getting an inheritance, it’s a good idea to talk to a lawyer who knows about money and taxes. They can help you figure out the best way to handle the money so you don’t have to pay as much in taxes. If you do it right, you can even protect the money for your family and give some of it to charity. It’s a good idea to talk to a lawyer who knows about this stuff before you get the money. When someone gets sick, they might want to review their estate plan to make sure their loved ones are taken care of. Buying a house can also affect estate planning, and it’s important to think about who will inherit the house and how it could affect taxes. Even if you have a will, buying a new property could cause problems if it’s not coordinated with your existing plan. If you’re moving to a new state or country, update your will and other planning documents to match the rules there. If you want to give a lot of money to charity or as gifts, get professional advice to minimize taxes. And if you’re traveling abroad, it’s a good time to make sure your estate plan is up to date, but don’t wait until the last minute. Retirement is a good time for people to update their estate plan because they will have a better idea of what their assets are and who they want to leave them to. A financial plan can help them figure out what they can afford to give away. It’s important to review and update an estate plan after major life events like marriage, having children, and retirement. This can help save money and stress for the people who inherit the assets. A lawyer doesn’t have to investigate a client’s affairs or give advice the client doesn’t want, but they can if it’s in the client’s best interest. If a lawyer doesn’t specialize in estate planning, they should work with someone who does. A child not mentioned in a will may still get a share of the parent’s estate. Disclaiming a beneficiary can help reduce taxes. Patrick J. Lannon is a lawyer who specializes in estate planning and tax law. “To teach lawyers to do their job well, serve the public, and make the justice system better.”

Source: https://www.floridabar.org/the-florida-bar-journal/what-every-attorney-needs-to-know-about-estate-planning/