The Importance of Periodically Reviewing Your Estate Plan
When was the last time your estate plan was reviewed? If you have an estate plan and you have never had it reviewed, or if your estate plan is over three years old, or if you have had any major events in your life, now’s the time!
Creating an estate plan is a crucial step in securing your financial future and ensuring your wishes are honored. However, simply having an estate plan is not enough. It is equally important to have your estate plan periodically reviewed by a qualified estate planning attorney to ensure it remains current and effective.
Changes in Personal Circumstances: Life is dynamic, and significant changes can affect your estate plan. Marriage, divorce, the birth of a child, the purchase of a new home, inheriting money, or the death of a loved one are all events that necessitate a review. An estate planning attorney can help adjust your plan to reflect your current family situation, ensuring that your assets are distributed according to your wishes and that your loved ones are protected.
Checking for Mistakes or Things to Do: Firms like us (Commonwealth Estate Planning) provide free estate planning consultations. You should use us to review your plan to make certain that your existing plan is current with the law, that it has been set up properly, and that it will do what you think it will do.
Changes in Assets: Over time, the nature and value of your assets can change. You may acquire new properties, start a business, or make significant investments. An outdated estate plan may not accurately reflect your current asset portfolio, potentially leading to complications in asset distribution. Regular reviews help to incorporate new assets and remove those you no longer own.
Tax Law Revisions: Tax laws are subject to change, and these changes can have significant implications for your estate plan. A qualified estate planning attorney stays abreast of these revisions and can advise you on how to adjust your plan to minimize tax liabilities. This proactive approach can help preserve more of your estate for your beneficiaries.
Updating Beneficiary Designations: Beneficiary designations on accounts such as life insurance policies, retirement plans, and bank accounts should align with your overall estate plan. These designations can override your will if there is a discrepancy. Regular reviews ensure that all beneficiary designations are up-to-date and consistent with your estate planning documents.
Legal and Financial Strategy Adjustments: Periodic reviews with a qualified attorney allow you to refine your legal and financial strategies. This includes updating powers of attorney, health care directives, and trust provisions. An estate planning attorney can help you adapt your plan to new legal tools and strategies that better protect your interests and those of your beneficiaries.
In conclusion, regularly reviewing your estate plan with a qualified estate planning attorney is essential to ensure it remains relevant and effective. This proactive approach provides peace of mind, knowing that your wishes will be honored, and your loved ones will be taken care of according to your intentions. Don't wait for life changes or legal updates to catch you off guard—schedule regular reviews to keep your estate plan in top shape.
Commonwealth Estate Planning: “Your Legacy is Our Passion”