An estate plan is not a one-time endeavor. It’s really a dynamic framework that evolves with the ebb and flow of one’s life. Regular reviews are pivotal in ensuring your plan remains robust, accurate, and in alignment with your current desires and circumstances. We suggest reviewing your plan annually. Here are some benefits of conducting annual estate plan reviews:
1. Life Changes: Significant life events such as births, deaths, marriages, divorces, or even changes in relationships can influence how you want to distribute your assets. An annual review provides an opportunity to modify your estate plan to reflect these personal milestones.
2. Asset Evolution: Over the year, there can be considerable changes in the value and nature of your assets, whether it is real estate, stocks, or other investments. Regularly updating your estate plan ensures that it accurately represents your current financial landscape.
3. Beneficiary Adjustments: Your intentions for your beneficiaries might evolve. Children grow up, relationships change, and sometimes, beneficiaries may predecease you. An annual check allows for updates to ensure assets go to the intended individuals or entities.
4. Legal and Tax Updates: Laws related to estates, trusts, and taxes are subject to change. Staying updated ensures your estate plan remains compliant and takes advantage of any new benefits or strategies.
5. Trust Re-evaluation: As time passes, the objectives of established trusts might be achieved, or new goals might emerge. Regular reviews can help determine if trusts should be modified, dissolved, or if new ones should be established.
Come back next week for Part II to see even more reasons to consider holding annual reviews of your estate plan, and how they can benefit you and your legacy! Contact us today to schedule an appointment to review your estate plan.