If you own a property in Pennsylvania and your estate plan still contains dates from before 2010, it might be time to dust it off and give it a serious once-over.
Updating your estate plan isn’t just about staying compliant with the law; it’s also about ensuring that your hard-earned property goes exactly where you want it to when the inevitable happens.
Remember, an out-of-date plan can often cause more headaches for your loved ones than no plan at all. To avoid such a mess—read on to why updating is crucial in today’s wild world.
What Is Estate Planning
Estate planning in Pennsylvania is all about laying out a clear roadmap for what should happen to your property—your house, bank accounts, beloved comic book collection, you name it—after you are gone. It is kind of like setting up a treasure map so your family and friends can avoid getting lost in legal limbo trying to figure out what you would have wanted.
You have got several tools at your disposal: wills and trusts are the big guns, helping allocate your assets with precision. Powers of attorney and living wills come into play too, letting folks know who can call the shots if you’re not able to do so yourself.
Keeping Up with Legal Changes
Since 2010, there has been quite a shuffle in tax laws that could impact your assets. Notable changes include Act 1 of 2016 and Act 57 of 2022.
Nationally, there is the Tax Cuts and Jobs Act of 2017. That capped state and local tax deductions at $10,000—tough news for homeowners in higher-tax areas who used to rely on larger deductions.
“With these changes surging through our legal systems almost yearly now, reassessing your estate plans isn’t just wise. It is essential to ensure you’re maximizing benefits under current laws,” says Pennsylvania property lawyer Tim Sechler
Family Dynamics Have Changed
Another big reason you might want to revisit that old estate plan is the changed family dynamics. We are talking about 13 years in 2024, and your family tree might have sprouted a few additional branches.
These changes in relationships can significantly alter the landscape of how you want your assets distributed. What worked perfectly over a decade ago might not even make sense today, so making an update is a good move.
The Growth of Your Estate
Your financial situation has probably evolved significantly since your last update. Investments may have matured, property values shifted skywards, or maybe you’ve launched a successful side hustle that’s now anything but “side.”
This growth could put you in an entirely new bracket concerning asset distribution and tax implications. Updating your estate plan ensures that your expanded wealth is protected and distributed according to your current wishes, not those that you had more than a decade ago.
Who Should Help with Your Estate Planning?
Now that you’ve seen why updating your estate plan is crucial, it’s time to think about who should help you navigate these changes. Ideally, reconnecting with the lawyer who originally drafted your plan would be great, but life happens—they might not be practicing anymore or could have passed away.
In such cases, it’s wise to seek out a new legal expert specializing in estate planning. They’ll bring fresh insights and ensure that your estate plan reflects the latest laws and aligns perfectly with your current life situation.
