Life Events

Have You Reviewed Your Will or Trust Lately?

by
Sonu Shukla
on
4/24/2019
Have You Reviewed Your Will or Trust Lately?

When is the last time that you looked at your will or trust documents? Chances are that if it's been a while.

Whether they were prepared as checklist items while meeting with an attorney or estate planner or in response to a specific event in your life, these essential documents are not meant to be locked away in a vault and forgotten. The people, places, and circumstances of your life change constantly, so your legal papers need to be reviewed on a regular basis to ensure that your wishes and goals have remained the same.

There are many different reasons for preparing a will or trust. Though the primary goal is to distribute your assets in the way that you want them, to the people you want to have them, they are also meant to minimize the impact of estate taxes or to maximize the benefits that your assets provide. But laws change, marital statuses shift, loved ones are born or die, and priorities change. The one thing that remains constant is that you want your wishes to be carried out.

It's hard to know exactly how frequently you should review your documents: what’s certain is that you can’t do it too often, but not doing it often enough can have devastating results that lead to family infighting or somebody receiving your assets that you no longer want to have them. To avoid that outcome, take action when any of the following type of event takes place in your life:

  • You get married, divorced or are widowed
  • Your beneficiary gets married, divorced or is widowed
  • You move to another state
  • Your financial profile changes significantly
  • You acquire or sell a significant asset or assets
  • You want to change to a different executor, trustee or personal representative
  • A beneficiary dies or your relationship with a beneficiary changes
  • The laws regarding distribution of assets and taxation change

A review of documents should not be limited to your will and/or trust. You also need to check the named beneficiaries on your other important papers and accounts, including pension plans, IRA accounts and insurance policies, powers of attorney and living wills. If you have listed an ex-spouse or a relative who has died since you executed the documents, it can create confusion at best, chaos and legal battles at worst.

By including a periodic review of documents in your to-do list, you can avoid numerous unpleasant outcomes. Be sure to schedule time with an experienced, knowledgeable professional to make sure that things are done right and according to your wishes.

Sonu Shukla, CPA writes for TaxBuzz, a tax news and advice website. Reach his office at [email protected].

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Sonu Shukla

Sonu Shukla

Sonu Shukla is a CPA, accountant, and tax preparer based in Orlando, FL. Sonu Shukla can assist you with your tax preparation and planning needs. Sonu is more than just another accountant in Orlando, Florida; he is a small business owner himself. It is a position in life that grants him the perspective and insight to emphasize with his clients, bringing them the best service possible. A Certified Public Accountant and a Certified Financial Planner, Sonu possesses the skills, education and experience to demonstrate unerring business acumen and passionately planned financial strategies. Being proactive is key for Sonu, tailoring highly efficient tax plans for his small business clients, all in a one on one environment where he and the client can bounce ideas around until every detail is worked out.

SONU SHUKLA, CPA, P.A.
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