National Estate Planning Month: Time for a Check-In
October is National Estate Planning Month, making it the perfect time to revisit and refresh your estate plans. You might remember the sense of accomplishment when you first created your estate plan, believing it was set for life. However, changes in life can quickly make original plans outdated, leading to complications or failing to express your true intentions.
This blog post explores seven critical reasons you should revisit your estate plan, ensuring it remains as effective and reflective of your current wishes as possible.
Life Events
Major life events like marriage, divorce, having a child, adopting, or experiencing the loss of a loved one should prompt immediate updates to your estate plan. These events significantly impact your personal and family dynamics, which should be accurately reflected in your documents.
Financial Changes
If you've started a new job, received a promotion, purchased real estate, or launched a business, these financial changes may need reflection in your estate planning documents to ensure your wealth is adequately protected and distributed according to your wishes.
Relocation
Moving to a new state can bring about different legal requirements and regulations that might impact your estate plan. It is crucial to reassess your documents to ensure they comply with your new state’s laws.
Health Issues
Personal health changes or health changes in loved ones can necessitate updates to healthcare directives or power of attorney arrangements within your estate plan.
Beneficiaries
It's wise to verify that your named beneficiaries still align with your current relationships and intentions. Over time, relationships change, and your estate plan should reflect these shifts.
Tax Law Updates
Changes in state or federal tax laws can create new obligations or opportunities for estate planning strategies. Keeping your plan updated with these changes ensures you maximize potential benefits and minimize liabilities.
Regular Reviews
Even if there are no major life changes, reviewing your estate plan every 3 to 5 years is a smart practice. This periodic check ensures it remains accurate, relevant, and aligned with your current wishes and needs.
Updating your estate plan doesn’t have to be overwhelming. The clarity and peace of mind it offers, knowing your plan accurately reflects your current wishes, is invaluable. Take this opportunity during National Estate Planning Month to schedule a consultation with a professional or start reviewing your documents today.