Your estate plan can help you envision your future. It can also provide your surviving family members with comfort and guidance after your death.
Even with a smart strategy in place, an outdated estate plan can thwart your end-of-life wishes. Knowing when to update your plan can prevent the disappointment of losing control over your assets.
An estate plan has a lot of moving pieces that require the participation of several people. You may have an executor, a medical power of attorney and a list of beneficiaries. If you divorce or remarry, it may impact your estate plan. Other events that could result in changes include the births of grandchildren, an adoption, death or even a substantial increase in assets. Acquiring an inheritance or experiencing a career promotion could change the way you plan to distribute your assets.
Periodically reviewing your plan can help you identify areas that need updating. According to U.S. News, experts recommend that you review your plan every five to seven years. If the changes you make affect other plan participants, you may consider informing them to maintain a common understanding of your end-of-life wishes.
Occasionally, tax laws will change. Depending on the type of assets you have, these changes could impact your estate plan. Working with a legal professional is an excellent way to stay informed of changes to notable laws that affect your plan.
Starting your estate plan with plenty of time before you anticipate needing it can give you peace of mind. Carefully curating a customized strategy can help you maximize your assets so you can maintain a satisfactory standard of living in your later years, as well as effectively care for your surviving loved ones.