October is National Estate Planning Month—a timely reminder to revisit and refresh your estate plans. Many of us set our estate plans in place years ago, thinking they were set for life. While these plans may have been well-considered initially, life moves swiftly, and an outdated estate plan can lead to complications or fail to reflect your true intentions. This blog explores seven reasons why now is the perfect time to reconsider your estate plan.
Significant Life Events
Life has a way of throwing unexpected changes our way. Marriage, divorce, childbirth, adoption, or the loss of a loved one are significant life events that can impact an estate plan. Your documents should evolve as your family does, ensuring that your intentions are accurately reflected.
Financial Changes
Have you recently started a new job, received a promotion, purchased real estate, or started a business? These financial changes might mean it’s time for a fresh look at your estate planning documents to align with your current financial landscape.
Relocation Considerations
Moving to a new state is an exciting change but one that might affect your estate plans due to differing legal requirements and regulations. Ensure your estate plan complies with local laws in your new location.
Beneficiary Verification
Over time, the relationships you have with your named beneficiaries might change. Verifying that your beneficiaries align with your current relationships and intentions ensures that your assets go where you intended.
Health Changes
If you or your loved ones have experienced changes in health, you may need to update healthcare directives or power of attorney arrangements. Health is unpredictable, so your estate plan should be ready to reflect these changes when necessary.
Tax Law Updates
State or federal tax laws are not static. Changes in tax laws can create new obligations or opportunities for estate planning strategies. It's wise to consult with a professional about any updates that could impact your estate.
Regular Reviews
Even if major life changes have not occurred, estate plans should still be reviewed every 3 to 5 years for accuracy and relevancy. Periodic reviews ensure your estate plan continues to meet your needs and goals.
Updating your estate plan doesn’t have to be overwhelming. There’s incredible peace of mind and clarity in knowing your plan reflects your current wishes. This October, let's take action: schedule a consultation with a professional or begin reviewing your documents. You'll be glad you did.