Updating Your Estate Plan after Receiving an Inheritance
Receiving an inheritance is a significant financial event that can have a substantial impact on your overall estate plan. To ensure that your estate plan aligns with your new financial circumstances and goals, it’s crucial to consider updating it after receiving an inheritance. Start by reevaluating your estate planning goals in light of your inheritance, considering how you want to provide for loved ones, minimize taxes, or support charitable causes. Review and update beneficiary designations on retirement accounts and life insurance policies to reflect your new assets and objectives.
Next, revisit your will or trust documents. If your existing plan doesn’t incorporate your inheritance appropriately, make necessary adjustments to ensure your assets are distributed according to your wishes. Additionally, consult with a tax professional to understand potential tax implications associated with your inheritance, such as estate, income, or capital gains taxes. You may need to establish or contribute to trusts to take advantage of asset protection, control over distributions, and tax benefits.
Lastly, consider your broader financial plan. Use this inheritance as an opportunity to optimize your investment strategy, retirement goals, and debt management. It’s also worth exploring charitable giving options, such as donor-advised funds or charitable trusts, if you wish to support philanthropic causes. Remember to communicate your intentions with your family and heirs, especially if there are significant changes to your estate plan.
Meet with an Experienced Estate Planning Attorney
Regularly reviewing and updating your estate plan ensures it continues to reflect your current wishes and circumstances while making the most of your newfound assets. If you need assistance with updating your estate plan, Call Wilson Law PLC at 866-603-5976 or fill out our contact form and we will be in touch to schedule a meeting. We can provide tailored advice and ensure your plan aligns with your goals.
