Life is always evolving, and your estate plan should reflect this. Failing to update it could lead to unintended consequences for your loved ones. They may miss out on an inheritance that you wanted them to receive.
An estate plan should generally be reviewed every year or two, but there are some key reasons to update it.at other times. Below are some important factors to consider.
Major life events
Significant changes in your personal life can impact your estate plan. Marriage, divorce, the birth of a child or the death of a beneficiary may require an update. You may need to change beneficiaries, guardians or power of attorney designations to reflect your current circumstances.
Changes in financial status
A significant increase or decrease in assets means your estate plan might need to be adjusted. If you bought a home, started a business or inherited wealth, your plan should account for these new assets. Updating your plan ensures proper distribution and tax efficiency.
Changes in the law
Estate laws and tax regulations change over time. If your plan doesn’t align with current laws when you pass away, your assets may not be distributed as intended. Regular updates help avoid unnecessary tax burdens and legal challenges for your heirs.
Health concerns and aging
As you age, your health care and financial needs may change. Updating your estate plan ensures that medical directives and powers of attorney reflect your wishes. This means that medical decisions can be made on your behalf, aligning with your outlook.
It is important to keep your estate plan current. This is the best way to ensure that your wishes are honored and your loved ones are cared for. Seeking legal guidance will help provide you with more information.