The Importance of Regularly Updating Your Estate Plan

Many people put off estate plan reviews—often because they do not think it’s a priority or because they believe their initial plan is sufficient. The truth is estate planning is an ongoing process, and failing to update legal documents when life changes can have serious consequences for you and your loved ones.

Whether your income has suddenly fluctuated, you’re nearing retirement, or your family dynamic has changed, here are a few common reasons to conduct an estate plan review.

Your Finances Changed

Did your finances suddenly go up or down? It may be time to address your financial plan or make legal updates to your estate plan. In many cases, our clients’ finances change because they:

• Recently retired
• Received a significant inheritance
• Sold or bought a new investment (property, stocks, businesses)
• Lost a job or made a career change
• Paid off debts

Your estate plan should reflect these life changes. An updated plan:

• Ensures newly acquired assets are protected
• You take advantage of tax savings opportunities (if available)
• Beneficiaries receive what you intend them to receive
• Your current financial status aligns with your current retirement or long-term care plans

Your Family Dynamic Shifted

Life is full of changes, and family structure is no exception. Whether you have recently married, divorced, or experienced a birth or death of a family member, child, or spouse, it may be time to conduct an estate plan review. Why?

An estate plan update ensures new family members are included in the estate plan and former members are removed. It also reflects changes in your relationships regarding inheritance. For instance, if you recently married, you may want to include your new spouse as a beneficiary or executor. If you’ve divorced, you may wish to remove your former spouse from your will, trust, and status as a beneficiary on life insurance policies.

Your Health Has Changed

Have unexpected health issues caused you to rethink your estate planning needs? If so, you may wish to make legal updates to your estate plan, including:

• Revisiting healthcare directives
• Reviewing your power of attorney
• Evaluating your long-term care needs
• Exploring gifting options or transferring assets to minimize estate taxes

You Sold Assets

We also recommend an estate plan review if you’ve recently sold significant assets like property or a business. Why?

• Your current estate plan may reference assets that no longer exist
• Selling assets can have significant tax consequences; adjusting your estate plan may allow you to take advantage of new tax-savings opportunities
• You may wish to revisit your estate distribution plan now that you have lost or gained assets

Your Personal Wishes Have Changed

Our personal preferences and views of the world often change as we age. And these changes impact our estate plans in significant ways.

Maybe you have a newfound passion for supporting a specific cause or charity. Perhaps your ideas about how to distribute wealth fairly among beneficiaries have shifted. Or maybe you want to add or remove beneficiaries based on new relationships. These are all legitimate reasons to make legal updates to your estate plan.

Manage Your Estate Plan With Confidence and Ease

We can't help you predict the future, but we can certainly help you plan for it! Let our experienced team guide you through the process with the expertise and personalized attention you deserve. Contact us today!