If you live in Arizona, utilizing the estate planning process is essential to help ensure your wishes are met when you die. Going through a second marriage can change your circumstances quickly. If you’ve already created a will before this event occurs, you may need to consider changing it. Otherwise, your personal property may go to individuals you no longer have a relationship with, such as an ex-spouse.
Updating your estate plan is essential if you get remarried
Taking the steps to legally change beneficiaries in your estate plan can be critical if you don’t want them to receive any of your property when you pass away. If you get divorced and have your ex-spouse listed as a beneficiary when you die, they will receive your assets. Changing your beneficiaries to a new spouse if you get remarried is also vital. Otherwise, you might die and leave your home, stocks and other personal property to a past spouse you despise.
Don’t forget to allocate other assets
Naming who receives your home, stocks and cash from bank accounts are common assets you’ll likely remember to list and designate to specific beneficiaries during the estate planning process. While this is essential, it’s also important to allocate other assets that aren’t as common. These can include the following:
- Coin collections
- Gun collections
- Family heirlooms
- Credits in frequent flyer or customer reward programs
- Digital assets – Social media accounts receiving revenue
Consider gifting your assets now to avoid taxes
Gifting your assets now is another way to ensure your wishes are met and save a considerable amount on taxes. This action can be done using $15,000 per person without dealing with the IRS or paying a federal gift tax.
For example, if you have two married children, you can gift $60,000 to your kids and spouses without paying a federal gift tax. The benefits can add up even more if you’re married and your spouse wants to provide a gift. Another $60,000 can be given yearly to your four married children without paying a federal gift tax, equaling a $120,000 tax-free gift from both of you.
Keeping your estate plan updated is critical when changes in your life occur. Using gifting to distribute your assets is another action you can take that has excellent benefits.