Why Retirement or a Major Financial Shift Should Prompt an Estate Plan Review in Connecticut

Financial milestones are a natural part of life. Over time, you build savings, grow investments, and work toward long-term stability. But when your financial circumstances shift, your estate plan must be reviewed to ensure it still functions as intended.

At Harper Law, we work with individuals and families across Connecticut to ensure their estate plans accurately reflect their current assets, goals, and tax strategies. Retirement, the sale of a business, or a significant inheritance can all affect how your estate plan operates and whether it still protects what you have built.

Below are several common financial changes that should prompt a closer look.

Retirement Brings New Priorities

Retirement marks a significant transition. Income sources often change, expenses shift, and legacy planning becomes more concrete. As you move into this phase, it is important to:

·      Review how your assets are titled

·      Update beneficiary designations on retirement accounts

·      Consider whether a trust is appropriate to manage distributions during your lifetime and after your passing

·      Reassess your financial power of attorney to ensure someone is prepared to act on your behalf if needed

You may have spent decades planning for retirement. Reviewing your estate plan helps ensure those efforts are protected.

Business Sale or Wind-Down

 If you have sold or closed a business, your estate plan should be updated to reflect this new chapter. Important considerations include:

·      How sale proceeds are held and titled

·      Whether your trust should be updated to account for newly acquired assets

·      How your estate will be administered without the business as part of it

·      The tax implications of the transaction, including potential capital gains

Business owners often have complex financial structures. Updating your estate plan after a major business event can simplify administration and reduce uncertainty for your heirs.

Receiving a Significant Inheritance

An inheritance can quickly change your overall financial picture. If you have recently received property, investments, or other substantial assets, you should review:

·      How the inherited assets fit into your existing estate plan

·      Whether they should be held individually or transferred into a trust

·      Whether your total estate is now large enough to trigger Connecticut estate taxes

·      How and when you want those assets to pass to the next generation

Failing to update your plan after receiving an inheritance can result in confusion, missed planning opportunities, or unintended tax consequences.

Tax Planning Should Not Be Overlooked

Estate tax is often misunderstood. In simple terms, it only applies if the value of your net worth, meaning everything you own minus what you owe, exceeds a certain threshold at the time of your death. That threshold is set by state and federal tax law.

Currently, Connecticut’s estate tax rules mirror federal law. For 2025, estate tax applies only if your net worth exceeds $13.99 million per person, or $27.98 million for married couples. Under current law, that threshold is scheduled to increase to $15 million per person, or $30 million for married couples, beginning in 2026.

Because these thresholds can change over time, it is important to review your estate plan periodically. That said, for most people, estate planning is not primarily about avoiding estate tax. It is about making sure your assets pass to the right people, in the right way, with clarity and minimal stress.

Regular reviews help ensure your plan stays up to date and aligns with current laws, while preserving as much as possible for the people you care about.

Protect What You Have Built

An estate plan is more than a set of documents. It reflects your financial life, your values, and your goals for the future. When your financial circumstances change, your plan should evolve as well.

At Harper Law, we provide clear, personalized guidance to help clients navigate financial transitions with confidence. Whether you are entering retirement, adjusting to a new financial reality, or planning ahead, we are here to help.

At Harper Law, we guide individuals and families through the estate planning process with clarity, care, and practical guidance. Whether you need to make targeted updates or create a new plan entirely, we are here to help.

Call us at (203) 883- 1656 or schedule a consultation today.

Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Please consult an attorney for specific legal guidance.