Creating an estate plan is a wise and important decision for every individual in California. Unfortunately, some people fail to recognize that estate planning is not a one-time event. Just as your life will change as the years go by, so should your estate plan. Meeting regularly with your attorney is a good way to ensure that your existing plan matches your current goals and needs. Certain life events should also trigger a call to your lawyer about whether you are in need of an estate planning modification. One such life event is a change in your employment status.
Why a Change in Employment Could Trigger a Need for an Updated Estate Plan
The following are five important reasons why a change in your employment situation could trigger a need for an update to your estate plan:
- The amount of your income may change. Increased income could put you above the total asset threshold for federal estate tax purposes. If your estate is at risk of being subject to such a tax, there are excellent estate planning tools available to help minimize or possibly eliminate your estate’s potential tax liability.
- Your new job may cause you to move out of state. Any time your home state changes, it is important to consider whether you need to modify your estate plan. Your new state may have drastically different estate planning laws than your former state.
- Your new job may mean that you are working in a different state than where you reside. Depending on the facts and circumstances surrounding your job change, this could have important tax consequences that may impact your estate plan.
- If your employment change includes retirement from the workforce, it is equally as important to consider an estate planning update. The amount and nature of your assets may change significantly. It is crucial to the success of your plan to consider how this impacts your estate from a tax and probate administration standpoint.
- Your new position may increase or change your financial and other job-related benefits. This change may cause you to rethink how you would like your assets distributed when you die.
Fortunately, our office of experienced estate planning attorneys has helped countless clients make sure that their estate plans are up-to-date. You don’t just have to take our word for it. We encourage you to learn how we have helped others by viewing our client testimonials page today.