As life changes, many people take time to think about new goals and what they want to accomplish in the years ahead. Life can change quickly, and so can family dynamics, laws, and your assets. A few thoughtful updates to your estate plan now can ensure your wishes are clear, your information is up-to-date, and your loved ones and legacy are protected.
Estate Plan Review After Major Life Changes
Start by considering any significant milestones or changes in your life or family. If your family dynamics, wealth, location, job, or health have shifted, those are all signs that it may be time to update your estate plan. Some of the most common changes can greatly impact your designations and decision-making roles.
A marriage or divorce means you need to update any payable on death beneficiaries on bank accounts or life insurance policies, as well as review your will or trust, so your spouse is accounted for. A new child or grandchild in the family may mean you need to add provisions for their inheritance or future care if something should happen to you.
It is also important to think about your executors, trustees, and powers of attorney. If one of those individuals dies, becomes unable to serve, or your relationship changes, you should designate new individuals to serve in those roles.
Reviewing Your Estate Plan Helps You Plan Ahead
Not only do you want to make sure all the details of your plan reflect your current situation, but you can also use a routine estate plan review to start thinking about the future. Being proactive helps keep your goals at the forefront and aligns your estate plan with those goals.
- Review your financial accounts to confirm they are appropriately titled and that beneficiary designations are correct on joint accounts, retirement accounts, and trust assets. It is also helpful to review whether your trust has been properly funded, if applicable.
- Analyze your insurance coverage and consider whether you need to increase coverage for potential long-term care needs or to provide for a child or dependent. It can also be helpful to discuss potential tax planning strategies designed to reduce future tax liabilities and preserve more of your assets for your beneficiaries.
Many estate planning professionals recommend reviewing your estate plan every three to five years, or sooner if a major life event occurs.
Reviewing your estate plan helps ensure it reflects your current values, financial situation, and long-term goals. Contact Douglass & Runger to schedule an estate plan review and help maintain peace of mind for you and your family.
