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When should you make changes to your estate plan?

On Behalf of | Dec 12, 2023 | Estate Planning |

When it comes to financial management, your estate plan has a critical role to play. To ensure that your estate plan always coincides with your wishes, you must update it regularly.

There are specific incidents where you need to review your plan.

Significant milestones and changes in life circumstances

In the U.S., about 67% of adults do not have an estate plan, despite going through the various life changes that should dictate creating or changing one. Marriage and having children are two typical milestones people typically hit before deciding to create an estate plan. Likewise, divorce and remarrying, in addition to more kids, should signal the need to alter their current estate plan. People need to remain proactive and adapt the estate plan to remain current with their current lifestyle.

Changes in your overall financial picture

Your financial landscape evolves constantly. Market fluctuations, economic trends and tax laws can affect your financial picture, in addition to your income. You should regularly reassess your estate plan to capitalize on new opportunities and avoid challenges. You can adjust your plan to consider your current income, to help minimize tax liabilities or to ensure your beneficiaries receive the intended benefits.

Updates to the laws governing estates and inheritances

The laws change year after year. You need to remain up to date on the laws governing estates and inheritances so that you can update your estate plan accordingly. Amendments to tax laws can impact your assets, including how you distribute them. When you review the estate plan regularly, you can remain compliant with the latest requirements.

If you do not review your estate plan regularly, your loved ones may not be able to fulfill your wishes.