If you need an example of how laws change, says a recent article from Press-Telegram, “5 tips for handling legal issues,” just look at the decision from the U.S. District Court for the Northern District of Alabama issued on March 1. The Court ruled the Corporate Transparency Act of 2021 is unconstitutional. The rule required companies to report owners who benefited from a company to the Financial Crimes Enforcement Network division of the Department of Treasury.
What does that mean for you? It’s simply an example of how laws change on a big scale and a smaller scale. This is why estate planning attorneys ask their clients to have their estate plans reviewed every few years. Laws change, and opportunities may be missed.
Circumstances also change. The person you trust with your medical decisions during one part of your life may change through divorce, death, or a falling out. If your estate planning documents don’t reflect the change, you may be counting on someone you don’t even like to make critical medical decisions on your behalf if you become incapacitated.
Business matters change constantly, which is critical to address in succession plans. If you have a buy/sell agreement, for example, and haven’t updated the valuation of your business in ten years, your heirs may be selling the family business for a number that doesn’t make sense.
Any time there’s a big change in your life—like selling a business, creating a business, or considering changes to your estate plan—it’s best to speak with a trusted professional, including an estate planning attorney, financial advisor, and CPA. People often say they aren’t ready to tackle changes to their financial plans, estate plans, or businesses because it’s all too complicated. This is why we work with professionals—they simplify matters, clarify our goals, and help us move from concept to completion.
One common wish is to avoid having children, surviving spouses, and other family members squabbling over estates. Just as some people don’t consider stop signs to be more than a suggestion, others don’t feel legal documents apply to them. In some cases, having open and honest conversations with heirs can prevent some of the post-mortem fighting. In others, even a “no contest” clause doesn’t stop an angry person from pursuing litigation.
Having a properly created estate plan, one that is prepared for a possible estate battle is the best thing you can do in advance.
Legal documents, especially estate planning documents, are never “set it and forget it” documents. There are simply too many changes in life and the law.
To learn more about estate planning in the East Valley, Gilbert, Mesa and Queen Creek, schedule your free consultation with Attorney Jake Carlson by using one of the links above.
Reference: Press-Telegram (March 10, 2024) “5 tips for handling legal issues”