Within a few weeks, a good percentage of people have already filed all income tax paperwork with the IRS. Once the deadline has passed, taxpayers are either anxiously looking forward to a refund or reluctantly getting ready to pay what more they owe.
The documentation forwarded by employers, financial institutions, administrators of investment accounts, and other organizations provides a snapshot of a person’s net worth. Considering the fact that financial status drives many aspects of an estate plan, the weeks leading up to Tax Day 2020 are ideal in terms of timing.
“So many people think they’re done with estate planning once they get their will, advance directives, and other documentation in place. They stow their documents away and let loved ones know where to find everything, assuming that the next time this paperwork will be relevant is upon their death.”
“When you get your tax documentation covering income from all sources every January, you need to note any significant changes from previous years. Once you hit a certain level, you should discuss your situation with an estate planning lawyer. You might need a revocable trust alongside your will, or you may want to consider gift planning and more complicated forms of trusts.”
In addition, Mr. Stark referred to other scenarios in which it would be appropriate to review an existing estate plan and make modifications to update the arrangement. Certain milestones and life events to consider include: