Checking In: National Estate Planning Month October
October is National Estate Planning Month—a timely reminder to revisit and refresh your estate plan. Perhaps you drafted your plan years ago, thinking it would be set for life. While your original plan may have been thoughtfully considered, life evolves, and an outdated estate plan can lead to complications or no longer reflect your true intentions. This month, we share seven reasons why you should revisit your estate plan.
Health Issues
Changes in health, whether personal or involving loved ones, could necessitate updates to healthcare directives or power of attorney arrangements. Ensuring these documents reflect current health considerations can offer peace of mind.
Beneficiaries
Review your named beneficiaries to ensure they align with your current relationships and intentions. Over time, shifts in family dynamics or friendships may require updates to who benefits from your estate.
Life Events
Significant life events such as marriage, divorce, childbirth, adoption, or the loss of a loved one are key times to update your estate plan. These changes in family structure can have a profound impact on how your assets should be distributed.
Tax Law Updates
State or federal tax law changes can create new obligations or present opportunities for optimizing your estate planning strategies. Keeping your plan aligned with current laws can help minimize potential taxes.
Financial Changes
A new job, a promotion, purchasing real estate, or starting a business are all financial changes that warrant a fresh look at your estate planning documents. Adjusting for these changes ensures that your plan reflects your current financial situation.
Relocation
If you've moved to a new state, it's crucial to revisit your estate plan to comply with varying legal requirements and regulations. States may have different laws affecting your estate, so ensuring compliance is essential.
Regular Reviews
Even in the absence of major life changes, estate plans should be reviewed every 3 to 5 years for accuracy and relevance. This ensures that your documents remain aligned with your wishes as laws and circumstances change.
Updating your estate plan doesn't have to be overwhelming. The peace of mind and clarity that comes from knowing your plan reflects your current intentions can be highly gratifying. This National Estate Planning Month, consider scheduling a consultation with a professional or begin reviewing your documents. There's no better time than now to ensure your estate plan is up-to-date.