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Why should you update your estate plan after starting a new job?

On Behalf of | Aug 4, 2023 | Estate Planning

Estate planning is not something that only older adults should do; younger people may also benefit from doing it early. Once you complete your estate plan, you should update it as you go through significant milestones, including each time you start a new job. There are several reasons why.

Change in income and benefits

Your new job might pay you more than your previous one did. This will likely increase your assets and place you under different tax standards. For example, your new income might put your total assets above the federal estate tax threshold. If you do not update your estate plan to account for such a significant change, your estate will likely be subject to hefty taxes later.

Furthermore, your new job might give you access to new benefits, such as a retirement plan. Failing to consider your retirement accounts in your estate plan means they will likely go through lengthy and costly probate when you die.

Change in location

A new job might mean relocating to a different state or country. Moving to a different location often affects your tax responsibilities, which might impact your estate plan.

Additionally, estate planning laws in your state or country may differ from those in your previous one. It is crucial that you follow estate planning laws and guidelines in your area of residence to avoid issues later.

Updating your estate plan is critical to ensuring that it reflects your most recent assets and is enforceable. When you update your estate plan, consulting an estate planning attorney can help protect your assets and intended beneficiaries from costly mistakes.