Reviewing and updating an estate plan is crucial for several reasons. Here are some of the key reasons why you should regularly review and update your estate plan:
Changes in personal circumstances: Life is full of changes, such as marriage, divorce, birth or adoption of a child, death of a loved one, changes in financial situation, or acquisition of new assets. Reviewing and updating your estate plan ensures that it accurately reflects your current wishes and circumstances.
Changes in laws: Estate planning laws can change over time, and these changes may affect how your assets are distributed, how taxes are imposed, and the legal validity of your estate planning documents. By reviewing and updating your estate plan, you can ensure that it remains in compliance with the latest legal requirements and take advantage of any new planning opportunities.
Protection of beneficiaries: Estate planning involves determining who will receive your assets after your passing. However, circumstances may change, and the individuals you initially designated as beneficiaries may no longer be suitable due to various reasons, such as strained relationships or financial irresponsibility. Regularly reviewing and updating your estate plan allows you to make any necessary changes to ensure that your assets are distributed to the right people in the proper manner.
Ensuring proper asset distribution: As time goes on, you may acquire new assets or dispose of existing ones. It's important to ensure that your estate plan reflects these changes accurately and that all your assets are included in the plan. Reviewing and updating your estate plan allows you to account for any new assets or changes in asset ownership.
Updating fiduciary appointments: Estate planning involves appointing various fiduciaries, such as personal representatives, trustees, guardians for minor children, and agents under powers of attorney. Regularly reviewing and updating your estate plan ensures that the individuals you've chosen are still willing and capable of fulfilling these roles. If not, you can make alternative appointments to ensure the proper management of your affairs.
In summary, reviewing and updating your estate plan is essential to ensure that it aligns with your current wishes, accounts for changes in your life and the law, protects your beneficiaries, minimizes taxes and expenses, and ensures the proper distribution of your assets.
Comments