Updating Your Estate Plan for National Estate Planning Month
October is National Estate Planning Month—a timely reminder to revisit and refresh your estate plans. Many people draft their estate plans thinking they have set their affairs for life. However, life rarely adheres to our schedules. An outdated estate plan can create unnecessary complications or fail to reflect your true intentions. Here are seven reasons you should consider revisiting your estate plan this month.
Life Events
Significant life events such as marriage, divorce, childbirth, adoption, or the loss of a loved one all warrant updates to your estate plan. These changes in your personal life can significantly alter the way you want your assets to be distributed.
Financial Changes
Any financial changes such as a new job, a promotion, purchasing real estate, or starting a business should prompt a fresh examination of your estate planning documents. As your financial landscape changes, so should your plans to ensure they align with your current situation.
Relocation
Moving to a new state can affect your estate plans because each state has its own legal requirements and regulations. It’s crucial to ensure that your estate plan complies with the laws of your new home state.
Beneficiaries
Verify that your named beneficiaries still align with your current relationships and intentions. Life changes might lead to situations where previous choices no longer reflect your wishes.
Health Issues
Changes in health, both personal and among loved ones, can necessitate updates to healthcare directives or power of attorney arrangements. It’s important that your estate plan reflects any new healthcare wishes or proxy selections.
Tax Law Updates
State or federal tax law changes can create new obligations or opportunities for estate planning strategies. Keeping your estate plan current with these changes ensures you avoid unnecessary tax burdens and take advantage of potential benefits.
Regular Reviews
Even if there are no major life changes, estate plans should be reviewed every 3 to 5 years for accuracy and relevance. This regular check ensures that everything remains in order and according to your current desires.
Updating an estate plan doesn’t have to be overwhelming. Imagine the peace of mind you’ll have knowing your plan fully reflects your current wishes. We encourage you to schedule a consultation with a professional or begin reviewing your documents this month.