Bay Area Estate And Tax Planning Law Firm

When should you update your estate plan?

On Behalf of | Jul 23, 2024 | Estate Planning |

Estate planning isn’t a one-and-done deal. Your plan is something that you should revisit periodically to ensure everything remains in line with your current wishes and circumstances.

Reviewing your estate plan involves more than just being sure that you have your assets going where you want them to go. Additionally, you also need to check things such as powers of attorney designations, end-of-life plans and certain appointments, including your estate administrator.

Major life events

After significant life event occur is a prime time to review your estate plan. Major events include getting married or divorced, experiencing the loss of a loved one or someone named in the estate plan or being diagnosed with a terminal condition. Having children or grandchildren also trigger the need to review an estate plan. Additionally, if you start or close a business or change jobs, your financial situation can change substantially, potentially requiring updates to your plan.

Changes in assets

If anything in your financial circumstances changes significantly, it’s a good idea to update your estate plan. You may need to adjust your documents after receiving an inheritance, purchasing, selling significant assets like property or retiring.

Changes in laws or regulations

Tax laws and estate planning regulations change periodically. When they do, certain terms and strategies employed in your estate plan might no longer be as effective or might require adjustments to comply with new laws. Keeping your plan up-to-date per the latest legal requirements can help to ensure your estate is handled as efficiently as possible.

Periodic reviews

It’s also generally wise to review your estate plan at least every three to five years. Regular check-ins can help you to catch any overlooked details or minor changes that might have occurred during that time frame.

Estate planning is a highly customized process. Ensuring that your estate plan clearly states your wishes is critical. Legal assistance can make it easier to make this happen in a way that’s legally enforceable when you pass away.

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