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When should you revisit your estate plan?

On Behalf of | Jul 30, 2024 | Estate Planning |

When you plan your estate, you lay the groundwork for your family’s future, ensuring they remain protected and provided for even when you are no longer here. This thoughtful act can bring you peace of mind and help you safeguard your legacy and deepest values.

However, as your life unfolds, your circumstances change, and your priorities naturally shift. These changes must also warrant some revisions in your estate plan to reflect your current goals and aspirations. But when is the right time to revisit and refine your estate plan?

Major life changes

If you have experienced a significant life change, it is essential to revisit your estate plan. For example, if you have recently married or divorced, your priorities and beneficiaries will most likely have shifted. The birth or adoption of a child is another crucial moment to designate proper guardianship for them. This allows you to make sure that they remain protected and provided for no matter what life throws your way.

Changes in financial circumstances

If your financial situation has changed significantly, it is a good idea to review your estate plan. If you have received a substantial inheritance, you might consider setting up a trust to manage the funds and minimize taxes.

Similarly, if you have bought or sold a business or experienced a significant change in your income, you might want to consider revising your existing estate planning documents. These changes can impact your tax situation, asset distribution and even your qualifications for certain government benefits.

Health and incapacity concerns

As you age, it becomes increasingly important to review your estate plan. This is particularly crucial for your health care proxy and power of attorney designations. For instance, if you have received a diagnosis of a serious illness, you may want to reconsider your end-of-life care preferences or adjust your plan to account for potential long-term care needs.

Safeguarding your future

Contrary to popular belief, estate planning is not a one-and-done process that can be left alone once you have created it. It is a dynamic process comprised of living documents that should grow and change with you. By regularly reviewing and updating it, you ensure that it continues to reflect your wishes and circumstances accurately.