An estate plan is not a one-time task but an ongoing process that should be reviewed and updated regularly to ensure it remains relevant and aligned with one's current wishes and circumstances. There are several key reasons why and when an estate plan should be reviewed or updated.
First, major life events should trigger a review of your estate plan. Events such as marriage, divorce, birth or adoption of a child, or the death of a loved one can significantly impact your estate planning needs. For example, after getting married, you may want to update beneficiary designations or include your spouse in your plan. Conversely, after a divorce, you may want to remove your ex-spouse from your estate planning documents.
Second, changes in financial status warrant a review of your estate plan. Significant changes in assets, investments, debts, or income may necessitate adjustments to your plan. This ensures that your assets are distributed according to your current wishes and that large sums of money are distributed to younger beneficiaries at the appropriate age.
Furthermore, changes in relationships or responsibilities within your family or among beneficiaries may necessitate updates to your estate plan. For example, if a beneficiary develops special needs, you may want to establish a trust or modify existing provisions to provide for their care adequately.
Changes in laws and regulations can also affect estate planning strategies. Probate laws, and regulations related to healthcare directives and powers of attorney may change over time. Regularly reviewing your estate plan with a qualified professional helps to ensure compliance with current laws and takes advantage of any new planning opportunities.
A general rule of thumb is to review your plan every three to five years or whenever there are significant changes in your life circumstances, finances, or laws that may impact your estate planning goals. Reviewing and updating your estate plan is crucial to ensure it reflects your current wishes and serves its intended purposes effectively.
Cameron A. Crump, Estate Planning Attorney
The McIntosh Law Firm, P.C.
https://www.mcintoshlawfirm.com/attorneys/cameron-a-crump/
704-892-1699