The benefits of an estate plan are well worth the time it takes to put one together. Knowing that your assets will stay in your family can give you reassurance.
Making sure that your plan stays relevant over time requires you to periodically make updates. Knowing which circumstances call for a review of your plan can help you maintain its integrity over time.
Changes to family dynamics
The people you name as beneficiaries are most often, members of your family. Changes to your family dynamics may alter the way you wish to distribute your money. Examples of some situations in which you may want to remove and update your beneficiaries include the following:
- Births of children or grandchildren
Changes to life circumstances
Changes unrelated to your family dynamic may also trigger updates to your estate plan. According to U.S. News, reviewing your plan every five to seven years can help you identify places that may require some changes to maintain relevance and function. Major life changes including the acquisition of a large inheritance or a significant increase in your income may impact your estate plan. Other circumstances including updates to tax laws, a move across state lines and economic hardship are other reasons to consider an update.
A well-written estate plan cannot do much good if it becomes outdated. Your effort to keep each component relevant to your current situation can give you peace of mind knowing that your plan’s execution will align with your intentions. An updated plan can also provide your surviving family members with clarity and comfort.