8 Key Reasons Why It May Be Time to Review Your Estate Plan

Your estate plan is a crucial document that ensures your assets are distributed according to your wishes after you're no longer here. While creating an estate plan is an important first step, it's equally vital to regularly review and update it to reflect changes in your life, your assets, and the law. Let us share with you the key reasons why it may be time to review your estate plan.

1. Major Life Events. Life is full of significant changes, such as marriage, divorce, the birth of a child or grandchild, or the loss of a loved one. These events can impact your estate plan significantly. For instance, you may want to include new beneficiaries, update your will, or change the terms of your trust to accommodate these life changes.

2. Changes in Finances. Significant changes in your financial situation, such as an inheritance, a substantial increase in assets, or a business sale, can necessitate a review of your estate plan. Ensuring your plan aligns with your current financial status is essential to protect your wealth and minimize tax implications.

3. Tax Laws and Regulations. Tax laws and regulations are subject to change. What was a sound estate plan in the past may not be as effective today due to shifting tax laws. Periodically reviewing your plan with a professional can help you take advantage of any new strategies or updates that align with current tax laws.

4. Healthcare Wishes. Your healthcare directives, including a living will and a durable power of attorney for healthcare, should be reviewed regularly. You may have new preferences or wishes regarding your medical treatment, and it's crucial to ensure that your documents accurately reflect your current desires.

5. Beneficiary Designations. Many assets, such as retirement accounts and life insurance policies, pass directly to beneficiaries outside of your will or trust. It's essential to review these beneficiary designations to ensure they align with your overall estate plan.

6. Changes in Future Decision Makers. Your choice of personal representative, trustee, or guardian may require updates over time. Make sure the individuals you've selected are still willing and able to fulfill their roles.

7. Location and Asset Changes. If you've relocated to another state or acquired assets in different jurisdictions, it's essential to review your estate plan to ensure it complies with the laws of your current location and accurately reflects your asset distribution wishes.

8. Time Interval. Even if you haven't experienced any major life changes, it's generally a good practice to review your estate plan every three to five years. This regular check-up can help you catch any overlooked details and ensure that your plan remains up-to-date.

In conclusion, reviewing your estate plan periodically is a responsible and prudent step to take. Life is dynamic, and your plan should evolve with it. By staying proactive and working with your experienced estate planning attorney, you can ensure your estate plan continues to protect your assets and fulfill your wishes long into the future.

We understand that planning for end of life, disability, or aging can be complicated and emotional. Porzio Planning’s experienced team of attorneys are here to help you navigate through this challenging time and make sure you feel secure and confident in your planning to ensure you reach your goals. Contact us today for the support you need.