Summer means smoke season for those of us who live and work in Southern California. The smoke is a reminder of how quickly things can go up in smoke. Fewer people are creating estate plans today than in years past. Research shows that, in 2024, less than one-third of Americans report having a will. Every adult should have at least a will. Many people can also benefit from estate planning documents such as trusts, powers of attorney, and advance directives. But, unless it’s up to date, your estate plan may no longer align with your objectives.
Estate Planning Is Down
As we get older, it is inevitable that we become more aware of our mortality. Reflections on life and death do not necessarily have to be morbid. They can also prompt us to take actions that focus on our legacy. Caring.com found that, in 2024, 43 percent of adults over age 55 have wills—down from 46 percent in 2023 and 48 percent in 2020
On the other hand, the number of young Americans who have a will has increased in recent years. However, around 75 percent of 18- to 34-year-olds and 35- to 54-year-olds still do not have one. Procrastination is the top reason people give for not making a will
Why an Estate Plan Can Fail
The reasons why people do not have an estate plan underscore the more significant point that estate planning can often feel overwhelming and unpleasant. However, not having a plan that addresses what happens to our money and property after our death, who cares for our minor child when we cannot, and who will manage our affairs during an emergency while we are alive, among other concerns, puts loved ones in a difficult position.
Signs Your Estate Plan Is Out-of-Date
An old, out-of-date estate plan can leave loved ones grappling with many of the same issues caused by not having an estate plan. Some estate plans fail to adequately take care of loved ones. As a result, accounts and property could go to inappropriate beneficiaries. What’s more, your estate may have adverse tax consequences. For example, you may not receive the end-of-life care you want, and your estate could be subject to unnecessary probate proceedings, to name just a few possible consequences.
Although no fail-proof rules exist for determining when to update an estate plan. Estate planning attorneys recommend revisiting a plan every few years or when there is a significant change in your life, your family’s life, or the law.
A few signs you need to update your estate plan
- It was created between 2018 and 2024. The planned expiration of the Tax Cuts and Jobs Act of 2017 at the end of 2025 is set to dramatically lower the lifetime federal estate and gift tax exemption amount, potentially increasing the number of estates subject to the federal estate tax and the estate tax liability amount.
- You wish to modify who receives an inheritance from your estate, the amounts they receive, or the conditions you place on an inheritance, such as instructions for trust distributions.
- You decide to make a charitable gift from your estate.
- A beneficiary, guardian, or agent has died, is sick, or is no longer a proper choice for some other reason, such as developing a substance abuse problem or showing poor judgment.
- A family member has suggested that they might challenge your will as presently written, and you want to add a no-contest clause (if recognized in your state) that discourages them from doing so using the threat of disinheritance.
- Your relationship with one or more family members has become strained, and you intend to disinherit them or change their inheritance.
- You have concerns about protecting a beneficiary’s inheritance from a spouse, divorce, lawsuit, or creditor.
- You or a family member recently divorced, remarried, became a widow or widower, or had a child.
- You acquired or disposed of significant accounts or property since your estate plan was created or last updated, for example, by inheritance.
- You purchased a new home, vacation home, rental property, or some other type of real estate.
Make Changes the Right Way: Talk to an Estate Planning Attorney
The only constant in life is change. An estate plan you created years ago is unlikely to reflect your present situation and priorities and could be almost as bad as not having one. While you may be tempted to create and update an estate plan independently, online estate planning tools can be another reason a plan fails, hurting your legacy and burdening your loved ones.
About Skvarna Law Firm in Glendora and Upland, California
Let a skilled attorney assist with your estate plan. So, contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. Therefore, we provide legal services for individuals living in San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
