Life Changes that Impact Taxes & Estate Plans

Tax season is upon us and it’s time to dig out all of last year’s receipts and pay-stubs. While you’re organizing your finances it’s also a good time to review your estate plan. Any significant changes in your life may mean it’s time to update your Will or other important documents. Below are a few examples that should trigger a review of your estate plan.

Increased Income

Did your salary double from last year? Lucky you! You may want to consider creating a trust to establish funds for a future purpose such as paying for a grandchild’s education. Trusts can also be used to help support charities or assist with Medicaid eligibility. There are a variety of trusts that can fit into an estate plan, even one for your furry friends.

Acquired Assets

Did you finally save up enough money to buy that lake house you always wanted? Make sure you include your new weekend get-away home in your estate plan. If it’s something you’d like to keep in the family for years to come then include it in your Will. That will ensure that your assets and property will go to the people you want to inherit from you.

Shifted Status

If you filed a joint tax return last year, but now find yourself filing on your own because of a divorce or death, or maybe the reverse because you got married, don’t forget to update your estate plan too. Without proper documents in place the wrong person could have decision-making privileges if you should become incapacitated or pass away.

Many of the same life changes that affect your tax returns can also impact your estate plans, so now is a good time to review your Will and other documents to be sure they reflect the most updated information about your income, property and relationships.

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Law Offices of Debbie J. Cunningham

Debbie Cunningham is an Irving attorney providing affordable estate planning to the Dallas/ Fort-Worth areas. She understands the steps you should take to protect yourself and your loved ones. Debbie is family-focused and wants to ensure her clients are fully informed on the options that are available for their families. Debbie’s own blended family has given her valuable insights into the complexities of family dynamics.

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