How To Update Your Estate Plan After Receiving An Inheritance

On Behalf of Ezell Law Firm, LLC

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Jul 15, 2024

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Estate Planning

Receiving a significant inheritance can change your financial situation. It’s important to update your estate plan to reflect these changes. It is helpful to understand how to ensure your estate plan stays current and effective in Louisiana.

Update your will

Your will should include details about how you want your assets distributed after your death. With a significant inheritance, you may want to adjust these details. Add any new assets to your will and consider how they will impact your existing beneficiaries.

Adjust beneficiary designations

Update beneficiary designations on accounts like life insurance policies and retirement accounts. Ensure that the people you want to receive these assets are correctly named. This can help avoid confusion and ensure beneficiaries follow your wishes.

Consider creating or updating a trust

Trusts can help manage and protect your assets. If you already have a trust, add the new assets to it. If you don’t have a trust, consider creating one to handle your inheritance. Trusts can offer tax benefits and make it easier to manage your estate.

Reevaluate your financial goals

A significant inheritance can change your financial goals. Reevaluate your short-term and long-term goals. Make sure your estate plan aligns with these goals and provides for your loved ones.

Address tax implications

Receiving an inheritance may have tax implications. Understand how the inheritance will affect your taxes and make appropriate plans. Consider strategies to minimize tax burdens on your estate and beneficiaries.

Keep your estate plan updated

Regularly review and update your estate plan. Life changes, such as marriages, births, and inheritances, can impact your plan. Keeping it updated ensures it reflects your current wishes and financial situation.

Updating your estate plan after receiving a significant inheritance in Louisiana ensures your assets are managed and distributed according to your wishes. Take these steps to keep your plan current and effective.