Losing a spouse is a devastating experience, and amidst the grieving process, it’s important to take time to review your estate plan. Not only will this help address immediate concerns regarding your spouse’s individual property, but it also allows you to plan for your own future.
Here are three key areas that require your attention as you navigate estate planning after the death of your spouse:
- Beneficiary designations: While your spouse was alive, they may have been designated as the primary beneficiary of your assets. With their passing, it’s crucial to reassess these designations. Consider who you want to inherit your assets now, whether it’s your children, another loved one, or even a charitable organization. Review and update beneficiary designations accordingly to reflect your current wishes.
- Incapacity planning: It’s common for spouses to name each other as their power of attorney agents, granting them the authority to make decisions on their behalf in case of incapacity. Following your spouse’s passing, you’ll need to make changes to ensure the right person holds this power moving forward. Update your power of attorney documents to designate a trusted individual who can make decisions aligned with your wishes.
- Probate considerations: If your spouse held any assets solely in their name, those assets will likely pass according to their will. It’s important to review the will and prepare for the probate process. Probate can be complex, time-consuming, and expensive, so understanding the implications and potential challenges is crucial. Consult with an experienced estate planning attorney to navigate this process smoothly.
- Tax issues: The death of a spouse usually triggers tax issues, such as a basis adjustment on community property and other property owned by the deceased spouse. In addition, income tax issues, especially issues related to IRAs, 401(k)s and other retirement accounts, must be addressed. A wrong step could trigger devastating taxes that may have otherwise been avoided or deferred.
Take the time to closely examine your estate plan after the loss of your spouse. While these four areas provide a starting point, remember that your entire plan may require adjustments. As you navigate this difficult time, seeking professional assistance can provide valuable guidance and support.
If you need assistance with any part of this process, don’t hesitate to reach out to our law firm. You can contact us via email at info@kinghornlaw.com or by phone at 520.529.4000. Our compassionate team of legal professionals is here to help you during this challenging period and provide the guidance you need to make informed decisions about your estate plan.
