How Often Should I Review My Estate Plan?

A best practice of managing personal finance is to monitor your financial plan's progress. However, different parts of your plan may require different review times. How often should you review the estate plan component of your overall plan to ensure that strategies and documents are up to date?

Though real-time life changes override a scheduled review, you should plan to evaluate your estate plan under the following circumstances:

1. After Major Life Events:

• Family Changes: Marriage, divorce, birth, adoption, or the passing of a loved one can significantly impact your estate planning decisions.
• Health Changes: A serious illness or disability may necessitate updates to your healthcare directives or powers of attorney.

2. Significant Financial Changes:

• Asset Acquisition or Disposal: Buying or selling substantial assets, such as real estate or businesses, can affect your estate distribution.
• Inheritance: Receiving a significant inheritance may require adjustments to your estate plan.

3. Changes in Laws:

• Tax Law Revisions: Updates in federal or state tax laws can influence estate planning strategies.
• Estate Planning Regulations: Legal changes may affect the validity or effectiveness of certain estate planning tools.

4. Periodic Reviews:

• Annual Check-Up: Conduct a general review annually to account for any minor changes or updates.
• Comprehensive Review Every Five Years: Undertake a thorough review every five years to ensure all components of your estate plan align with your current goals and circumstances.

Steps to Update Your Estate Plan

1. Assess Current Documents:

• Review your will, trusts, powers of attorney, and healthcare directives to ensure they reflect your current intentions.

2. Evaluate Beneficiary Designations:

• Confirm that beneficiaries on insurance policies, retirement accounts, and other financial instruments are up to date.

3. Consult with Professionals:

• Consider consulting with estate planning attorneys and financial advisors to discuss potential adjustments and ensure compliance with current laws.

4. Communicate with Family:

• Inform relevant family members or appointed executors about changes to your estate plan to prevent future misunderstandings.

Empower Your Legacy

Regularly updating your estate plan empowers you to control your legacy and provides peace of mind that your wishes will be honored. By staying proactive, you can navigate life’s changes confidently and ensure your estate plan continues to serve your best interests.

Take Action Today

Don’t wait for life changes to prompt a review of your estate plan. Proactively managing your estate plan ensures it remains aligned with your goals and adapts to any new circumstances.

Ready to secure your legacy and reach your possible? Connect with a trusted financial advisor to navigate your financial future with confidence and schedule a comprehensive review.

By integrating these strategies and maintaining regular reviews, you can ensure your estate plan remains a true reflection of your wishes, providing security for you and your loved ones.

This information and content provided is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice.  Please consult an independent tax, legal, or financial professional for specific advice about your individual situation.