When Should You Revisit Your Estate Plan?
Estate planning paperwork is often completed, stored in a safe or drawer, and then forgotten about. However, estate planning, like your home, vehicle, and other significant assets, requires regular upkeep. But when is the best time to review and revise your will or trust document?
Estate planning agreements should be reviewed annually, but it is more realistic to do so every three to five years (independent of life events). It should be made earlier if your circumstances have changed significantly.
A reexamination of your estate planning may be necessitated by the following events:
1. Changes in Family Status
When there are changes in family status, it is important for the estate plan to be revisited. This is because the changes may impact who gets what in the estate and how it is handled. For example, if a child gets married, you may want them to inherit differently than if they were single.
Or maybe you have a new child? You may want your estate plan to cater to them in the event of your untimely demise.
On the other hand, whether because of a death, disability, or change in relationship status – you will also want to update your estate plan to reflect that.
These are just a few examples of how changes in family status can impact an estate plan.
2. Changes in Tax Rules
Tax laws are always evolving, so it is important to revisit your family plan to make sure it still meets your needs. Depending on the existing laws in place, your estate plan should be structured in a way that minimizes the tax burden on the beneficiaries. This can be accomplished by using complex estate planning techniques and strategies.
As such, it is important to work with an experienced estate planning attorney to make sure that the plan is tailored to meet the specific needs of your heirs.
3. Changes in Your State of Residence
If your state of residence changes, it is important to revisit your estate plan to ensure that it still accomplishes your goals. The laws governing estates vary significantly from state to state, and your estate plan may need to be modified to account for the new laws.
4. Changes in Financial Situation
Your estate plan should be revisited when there are significant changes in your financial situation. This could be a change in your income, your net worth, or the composition of your assets. These changes may require you to update your estate plan to ensure that it still meets your goals and objectives.
In particular, a change in one’s financial situation may necessitate a change in the estate plan in order to account for new (or fewer) assets or liabilities.
5. Changes in Health
Your health is a major factor in estate planning, as it can affect your ability to make decisions and manage your own affairs. If you experience a health change that renders you unable to manage your own affairs, your estate plan will need to be updated to reflect this new situation.
For example, if you become incapacitated and can no longer make decisions for yourself, you will need a guardian appointed to make decisions on your behalf.
The SG Law Firm
The SG Law Firm provides legal services for individuals who need help with estate planning in Florida. This includes drafting wills and trusts, as well as providing advice on estate and tax planning. Our firm has years of experience helping clients from all walks of life, and can provide tailored advice to meet your specific needs. If you are looking for reliable, professional legal assistance with your estate planning needs, contact the SG Law Firm today.