If you already have an estate plan, then you're off to a great start. If you haven't begun this process yet, now is the time to take the necessary steps to do so. Once your estate plan has been drawn up, it is strongly recommended that you revise and review it every three to five years.
Whether you're here because you've made those initial steps and are staying ahead of the game, or you just don't know where to start, we have you covered. Here's the top ten reasons why you should update your estate plan:
1. New Child or Grandchild
Welcoming a new child to your family is always a joyous occasion. It is also a great time to ensure your estate will benefit and support the next generation.
2. New Marriage
Make sure that your estate will provide for your new spouse or protect assets from your child’s spouse. Even if you are not yet married, you can adjust your estate to benefit your partner.
Feel secure as you transition to the next stage of your life by reviewing your estate plan at retirement.
4. New Laws
Whether or not you plan on moving to a new state, reviewing state laws for regular updates is always wise. In addition, federal laws, including the 2017 Tax Cuts and Jobs Act, continue to adjust for inflation and change over time, so it is important to make sure your estate maximizes the benefits that these changes provide.
5. Expand Your Beneficiaries
Beyond family and loved ones, many clients allocate their estates to benefit organizations and charities that serve their passions.
6. Child Has Reached the Age of 18
Celebrate this important milestone by making sure all your estate documents are up to date and properly recognize your new adult beneficiary. Additionally adult children need Power of Attorney, HIPAA Release and Health Care Proxy before heading off to college, so that their parents can still act on their behalf in the event of an emergency.
7. Divorce or a Death in the Family
It is important to adjust your estate so that assets allocated to former beneficiaries are redistributed to other loved ones.
8. Opening a New Business
Safeguard your livelihood by establishing a business succession plan in your estate.
9. Receiving an Inheritance
If you find yourself the beneficiary of a sudden windfall, be sure to account for your new assets in your estate.
10. The Passage of Time
It is always a best practice to review your estate every three to five years to take into account new life events and changes to the law.