The new year is a common time for fresh starts, resolutions, and keeping your affairs in order. For families and individuals across Utah like you, this is the perfect opportunity to review your estate plan, including your Will and any associated Trusts. Estate planning is not a one-time event; it’s an ongoing process that ensures your wishes are honored, your loved ones are protected, and your plan aligns with current law.
Here are some key reasons why you should prioritize updating your will this year.
Life Changes Warrant a Review
Life is dynamic, and major milestones can render an old Will outdated or ineffective. Even if your original documents were perfectly crafted, a significant life event can shift your circumstances dramatically.
- Marital Status Changes: Marriage, divorce, or the death of a spouse are primary reasons for an update. New spouses must be accounted for, and prior partners may need to be removed as beneficiaries or fiduciaries to avoid unintended outcomes.
- New Additions to the Family: The birth or adoption of children or grandchildren is a joyous occasion that requires updating guardianship nominations and ensuring new family members are included in your distribution plan.
- Death of a Named Individual: If a named beneficiary, executor, or trustee is no longer able to serve, you must update your documents to name a successor.
- Relocation or New Property: While your Will may still be legally valid after a move, Utah has specific laws regarding spousal rights and probate procedures. A local review ensures your plan works optimally within the state’s legal framework.
Financial Shifts and Asset Changes
The value and composition of your estate can change dramatically over time.
- Increased or Decreased Wealth: A substantial change in your net worth, either through business growth, inheritance, or market fluctuations, should prompt a review. Your original plan might no longer divide your assets equitably or efficiently.
- New Business Ventures: Starting a new business or acquiring new properties means these assets must be properly accounted for and managed in your Will or Trust to ensure a smooth transition of ownership.
- Changes to Beneficiary Designations: Remember that certain assets like life insurance policies, retirement accounts (401k, IRA), and Payable-on-Death (POD) accounts pass outside of your Will. You must check and update the beneficiary designations on these accounts to match your current wishes.
Keeping Pace with Legal and Tax Laws
State and federal laws are constantly evolving, and a failure to adapt your estate plan can have costly or unintended consequences.
- Potential Federal Tax Law Changes: While federal estate and gift tax exemptions can fluctuate (e.g., scheduled changes at the end of 2025), a proactive review is crucial, especially for high-net-worth individuals, to ensure your plan maximizes tax-saving strategies.
- Utah State Law Updates: The Utah Legislature periodically reviews and amends probate, trust, and property laws. Ensuring your documents align with the most recent state statutes is the best way to secure your legacy and minimize complications for your family.
Talk to Our Lehi Estate Planning Lawyer
Your estate plan is one of the most important documents you will create. Don’t let another year pass with outdated wishes and potential legal hazards.
This New Year, make a resolution to secure your family’s future. Contact our Lehi estate planning lawyer at Gibson Law Firm for a comprehensive review of your existing Will and estate plan.
Call us today at (877) 540-4416 to schedule your consultation and ensure your legacy is protected.