Revisiting Your Estate Plan This National Estate Planning Month
October: A Critical Time for Estate Planning
October is National Estate Planning Month, a timely reminder to revisit and refresh your estate plans. You may have created your plan years ago, believing it was set for life. While it might have been well-considered at the time, life changes rapidly, and an outdated estate plan can create unnecessary complications or fail to reflect your true intentions.
Here are seven reasons you should revisit your estate plan now:
Consider Life Events
Significant life events—such as marriage, divorce, childbirth, adoption, or the loss of a loved one—warrant updates to your estate plan. These changes in life require reassessing the beneficiaries and assets mentioned in your plan.
Reflect on Financial Changes
A new job, a promotion, purchasing real estate, or starting a business should prompt a fresh look at your estate planning documents. Financial changes may shift how you wish assets to be managed or allocated.
Check Beneficiary Designations
Ensure your named beneficiaries still align with your current relationships and intentions. Personal dynamics change, and it is vital to verify that your estate plan reflects these shifts.
Relocation Impacts
Moving to a new state can affect your estate plans due to differing legal requirements and regulations. It's crucial to adjust your plans to comply with your new location's laws.
Address Health Issues
Changes in health—either personal or among loved ones—might necessitate updates to healthcare directives or power of attorney arrangements. It ensures that medical and care decisions align with current preferences and realities.
Keep Up with Tax Law Updates
Changes in state or federal tax laws can create new obligations or opportunities for estate planning strategies. Staying informed helps in optimizing your plan for tax efficiency.
Regular Reviews for Peace of Mind
Even in the absence of major life changes, estate plans should be reviewed every 3 to 5 years for accuracy and relevance. Regular updates can provide peace of mind and clarity that your plan reflects your current wishes.
Updating your estate plan doesn't have to be overwhelming. The peace of mind and clarity that comes with knowing your plan is up to date and reflects your present wishes is invaluable. This month, take the initiative to schedule a consultation with a professional or start reviewing your documents. Don't wait—take action now for your future peace of mind.
