An estate plan isn’t something you set and forget; it’s a roadmap that should adapt as your life changes. Regularly reviewing your estate plan ensures it aligns with your current circumstances, protecting your loved ones and your wishes. Here are some significant life events that may prompt an update.
1. Family Changes: Marriages, Divorces, and New Children
Major family events like marriage, divorce, or the birth of a child often require updates to your estate plan. Adding a new spouse or child ensures they’re included in your plan, while a divorce may mean revising beneficiary designations and powers of attorney.
2. Acquiring or Selling Significant Assets
If you’ve recently purchased a home, invested in property, or acquired substantial assets, these should be reflected in your estate plan. Conversely, if you’ve sold property or assets, removing them from your plan can prevent potential confusion down the line.
3. Changes in Health or Disability
A significant change in health may prompt updates to your healthcare directive and power of attorney. By revisiting these documents, you can ensure trusted individuals are designated to make healthcare and financial decisions on your behalf.
4. Career Changes or Retirement
A new job, starting a business, or retirement can impact your financial landscape and the way you want to handle your assets. Reviewing your plan during these times can help align your estate with your new financial outlook.
5. Legal or Tax Law Updates
Laws around estate taxes and inheritance can change, which may impact your estate plan’s effectiveness. Staying informed and making adjustments as needed can help you maximize tax benefits and protect your legacy under current laws.
6. Periodic Reviews – Every 3-5 Years
Even without major life events, a periodic review every 3 to 5 years is beneficial. This ensures that your plan remains up to date with your current circumstances and any changes in laws or best practices in estate planning.
Keeping Your Plan Current
Life is dynamic, and your estate plan should reflect that. At Von Rock Law, we recommend regular reviews to help you keep pace with life changes, ensuring your loved ones and assets are always protected according to your wishes.
Time to Update?
Contact us to schedule a review or learn more about making essential updates to your estate plan.
