A sound estate plan is an indispensable tool for securing your financial future. It provides a clear directive for asset distribution after your passing and ensures the protection of your wealth.
However, an often-overlooked aspect is the need for routine estate plan reviews and updates. Why is this necessary, and what does it entail? Let’s explore.
Life Events
The dynamic nature of life is the primary reason for regular estate plan updates. Life events such as marriage, divorce, the birth of a new family member, or even a sudden windfall can drastically shift your estate planning requirements.
For instance, upon the arrival of a newborn, it becomes essential to incorporate strategies that secure their future, like designating a guardian or establishing a trust. Failing to update your estate plan could lead to undesirable outcomes, such as your assets not reaching the intended beneficiaries.
Laws Are Subject to Change
The legal landscape that surrounds estate planning is another reason to keep your plan updated. Laws related to estates and taxation often undergo changes. What might have been a tax-effective strategy a decade ago may no longer be beneficial under current laws.
Regularly updating your estate plan ensures it aligns with the most recent regulations and continues to safeguard your assets effectively.
Evolving Financial Status
The changing nature of your financial status also underscores the need for routine estate plan reviews. As your financial profile evolves, the distribution of your estate may need to be adjusted.
You may accumulate more wealth due to an increase in income or the acquisition of new assets. On the flip side, financial downturns or asset liquidations can reduce your estate’s value. Both scenarios necessitate a review and adjustment of your estate plan.
Shifting Priorities
Finally, your shifting priorities and goals should be mirrored in your estate plan. With the passing of time, your focus might shift towards charitable giving, supporting a newfound cause, or funding a grandchild’s education. Ensuring that your estate plan aligns with these evolving objectives is crucial.
Timing Questions
The question then arises: how often should an estate plan be reviewed and updated? While personal circumstances will influence this, as a general guideline, it’s wise to revisit your estate plan every three to five years. However, significant life changes or drastic financial shifts should prompt an earlier review.
Final Thoughts
In summary, the need for routine reviews and updates of your estate plan is a fact that cannot be understated. We live in an ever-evolving world, full of surprises. It’s only logical to ensure that your estate plan stays current, reflecting your up-to-date wishes and standing resilient in the face of change.
Remember that estate planning isn’t just about end-of-life planning; it’s about safeguarding your assets throughout your life. It’s about securing your family’s financial future and ensuring their well-being.
To fulfill these objectives, keeping your estate plan relevant and updated is non-negotiable. If it’s been some time since you last reviewed your estate plan, consider revisiting it. This effort, however small, can make a big difference for you and your loved ones.
Attend a Complimentary Seminar
We have some great opportunities coming up in the near future if you would like to build on your estate planning and elder care preparation knowledge. Our attorneys conduct seminars on an ongoing basis that cover all the important topics.
There is no charge to attend, and this is a great way to make an initial connection with our firm. You can see the dates and obtain more information if you visit our Estate Planning Seminars page.
Ready to Act Now?
If you are here because you are ready to put a plan in place, our doors are open. You can send us a message to request a consultation, and you can alternately set up an appointment at our Glastonbury or Westport, CT estate planning offices if you call us at 860-548-1000.
Mr. Horowitz was awarded his Juris Doctor degree with honors from the University of Connecticut School of Law. While attending law school, Mr. Horowitz received the American Jurisprudence Award in Legal Ethics and the Nathan Burkan Award.
After graduation from law school, Mr. Horowitz continued his legal education at New York University School of Law where he received a Post Doctorate Law Degree in Taxation. He has also recently received a national achievement award.
Mr. Horowitz is admitted to practice before all the state courts in the State of Connecticut and the United States District Court.
Mr. Horowitz was selected for Super Lawyers in 2021.