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5 Reasons To Review Your Estate Plan Periodically

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When was the last time your estate plan was reviewed? If it was more than five years ago or if your family circumstances have changed, it is worth having someone look at your plan.

Here are five reasons why you should periodically review your estate plan:

  1. There may have been changes to federal or state tax laws. These changes may affect the taxes your estate will be responsible for.
  2. If you have relocated to another state for your primary domicile, everything from your health care proxy to estate taxes to probate may be affected. In addition, financial institutions, some of which are already leery of accepting powers of attorney, may be reluctant to accept a document that originates in another state.
  3. There may have been changes in family circumstances. If not addressed, these changes can result in disputes and contests during the administration of your estate.
  4. Your financial circumstances may have changed. Perhaps you inherited, won the lottery, started a business, created a trust, or sold the home you had lived in for 35 years. Events such as these would affect the estate plan already in place when they occurred.
  5. There may have been changes to the probate process. As any fees and expenses associated with the process will be deducted from the value of the estate, you may wish to update how your plan is written.

Examples of family changes that could affect your estate plan:

  • Marriage or divorce will affect the people named as beneficiaries. Will your children’s inheritances be protected if you get divorced and your ex-spouse remarries?
  • New additions to the family — children or grandchildren, perhaps including a special needs child — may not have been included in your current estate plan. Alternatively, you may have included someone you no longer wish to be a beneficiary.
  • An individual or entity named as an executor or as a power of attorney may be deceased or otherwise unable to perform those duties.
  • For similar reasons, you may need to update any beneficiary designations in life insurance policies, pensions, and retirement accounts.
  • You may wish to change the person or people named as guardians for your minor children.

Consider the future

Estate planning, like most strategic tax planning, is not a one-and-done effort. Life happens; circumstances change. That is why reviewing your estate plan every two to five years — or if family circumstances change — is the best way to ensure that your estate plan will distribute your property according to your wishes and that any federal or state tax on your estate will be minimized. An out-of-date plan can have the reverse effect: It can unintentionally cause conflict and incur costs that reduce its value.

Having your estate plan reviewed by an estate planning professional every few years is the best way to protect your loved ones and your assets. If you already have an estate plan to review or are eager to get started, reach out to our office to find out how to qualify for a free consultation.

Miranda Dressler
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