Estate planning is not a one-time task; it’s a dynamic process that requires ongoing attention and periodic review. Life is full of changes—both expected and unexpected—and your estate plan needs to evolve alongside your circumstances. In this blog post, we’ll explore why it’s crucial to review your estate plan regularly and how doing so can help ensure that your wishes are always accurately reflected.

The Changing Landscape of Life

Life is marked by a series of significant events, from joyful celebrations like marriages, births, and graduations, to more challenging moments such as divorces, deaths, and changes in financial situations. Each of these events can have an impact on your estate plan, affecting your beneficiaries, assets, and overall goals.

Reasons to Regularly Review Your Estate Plan

1.     Life Changes: Major life events can alter your priorities and objectives. Regular reviews allow you to align your estate plan with your current goals, whether it’s providing for a new family member, updating beneficiaries, or accounting for a change in marital status.

2.     Asset Fluctuations: Changes in your financial situation, such as new investments, property acquisitions, or business ventures, can necessitate adjustments to your estate plan to help ensure proper distribution of assets.

3.     Beneficiary Designations: Over time, relationships with beneficiaries can change. It’s essential to ensure that your chosen beneficiaries are still in alignment with your wishes.

4.     Legal and Tax Updates: Laws related to estate taxes and inheritance can change. Regular reviews help ensure that your plan remains compliant with current legal requirements and maximizes tax efficiency.

5.     Executor and Guardian Appointments: The individuals you’ve chosen as executors or guardians may no longer be willing or able to fulfill those roles. Regular reviews allow you to make necessary replacements.

6.     Digital Assets: As our lives become more digital, it’s important to include provisions for your online accounts and digital assets in your estate plan. Regular reviews are designed to ensure that these details are up to date.

7.     Healthcare Preferences: If your medical preferences change, it’s crucial to update your advance healthcare directive (living will) to reflect your current wishes regarding medical treatment and end-of-life care.

8.     Confidence: Knowing that your estate plan accurately reflects your wishes provides confidence for you and your loved ones, especially during times of emotional stress.

Taking Action: How to Review Your Estate Plan

1.     Set a Schedule: Establish a routine for reviewing your estate plan. Many experts recommend reviewing it every three to five years or whenever a significant life event occurs.

2.     Consult Professionals: Engage with an experienced estate planning attorney and financial advisor when conducting your review. Their expertise can help ensure that your plan remains current and effective.

3.     Gather Documents: Collect all relevant documents, including wills, trusts, powers of attorney, and beneficiary designations.

4.     Check Details: Review your beneficiaries, asset allocations, guardian appointments, and any specific instructions outlined in your plan.

5.     Update and Amend: Make necessary updates or amendments to your plan, addressing any changes in your life circumstances or goals.

Conclusion

Regularly reviewing your estate plan is a proactive and responsible approach designed to ensure that your wishes are honored, your loved ones are provided for, and your assets are distributed according to your current intentions. By staying on top of changes in your life and seeking professional guidance, you can adapt your estate plan to reflect your evolving circumstances. Remember, an up-to-date estate plan not only preserves your legacy but also provides confidence for you and your family, assuring that your wishes will be carried out in the years to come.

The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any opinions are those of Dan W. Nowell Wealth Management and not necessarily those of Raymond James. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.