Why You Need to Regularly Update Your Estate Plan
Creating an estate plan is a major step in securing your financial future and protecting your loved ones. However, it’s not a one-and-done process. As life changes, so should your estate plan. Whether it’s a significant life event or a change in assets, keeping your estate plan up to date is essential to ensuring your wishes are carried out smoothly.
Key Reasons to Update Your Estate Plan
1. Marriage or Divorce
Getting married or divorced is a major life change that can significantly affect your estate plan. You may want to add your spouse or remove an ex-spouse as a beneficiary. It’s also important to update powers of attorney and healthcare directives to reflect the current status of your relationships.
2. Birth or Adoption of a Child
When you welcome a new child into the family, it’s time to revise your estate plan to include them. You can update your will to appoint guardianship and ensure your child is provided for in the event something happens to you.
3. Death of a Beneficiary or Executor
The loss of a loved one, especially if they are listed as a beneficiary or executor in your estate plan, is another reason to update your plan. It’s important to revise these roles to prevent complications down the line.
4. Changes in Assets or Financial Situation
If you acquire significant assets—like a home, business, or large inheritance—or experience a shift in your financial situation, it’s important to revise your estate plan to reflect those changes. This helps avoid disputes and ensures your assets are distributed according to your wishes.
5. Relocation to a Different State
Moving to another state can impact your estate plan because estate planning laws vary from state to state. Updating your documents ensures they are compliant with your new state’s legal requirements.
6. Changes in Tax Laws
Tax laws frequently change, and these changes can impact your estate planning strategies. Working with an attorney to update your estate plan ensures that you are taking advantage of any new tax-saving opportunities.
How Often Should You Review Your Estate Plan?
At a minimum, it’s a good idea to review your estate plan every three to five years. However, after any major life event, you should schedule a review with your attorney to ensure everything is still in alignment with your wishes.
Why Work With an Estate Planning Attorney?
Working with an experienced estate planning attorney like Dana M. Cannon at Cannon Legal Firm ensures that your documents are legally binding, up to date, and tailored to your unique needs. DIY estate plans often miss crucial details that can lead to complications, disputes, or unintended tax consequences.
Final Thoughts
Life is full of changes, and your estate plan needs to evolve with those changes. Taking the time to regularly update your estate plan ensures that your loved ones are protected, and your assets are distributed according to your wishes.
Contact Cannon Legal Firm today for a free consultation to review and update your estate plan!