Reviewing and Updating Your Estate Plan

Creating an estate plan is a vital step in protecting your assets and ensuring your wishes are honored after you pass away. Many people mistakenly believe that once an estate plan is established, it remains valid forever. However, life is always changing, and many events can require a review and update of your estate plan. This post explains when and how to reevaluate your estate plan to align it with significant life changes.

When to Review Your Estate Plan

Major Life Events

Experiencing major life events is one of the key triggers for reviewing your estate plan. Milestones such as marriage, divorce, the birth of a child, or the death of a loved one can greatly impact your beneficiaries and your wishes.

For example, if you recently tied the knot, including your spouse in your estate plan is essential. You might want to update your will to include them as a beneficiary or designate them as your power of attorney. Conversely, if you’ve gone through a divorce, it's critical to remove your ex-spouse from your estate documents to ensure that your estate accurately reflects your current familial situation. Statistically, nearly 50% of marriages end in divorce; updating your estate plan in such times is crucial to prevent unintended bequests.

Significant Asset Changes

Changes to your assets also demand a review of your estate plan. This includes receiving an inheritance, purchasing real estate, or making significant investments. Each asset may come with its own considerations for distribution after your passing.

For instance, if you purchased a vacation home valued at $300,000, you need to specify how this asset should be distributed to your heirs. Clearly outlining your intentions for each asset helps prevent potential disputes among beneficiaries, which can become common when large assets are involved. If your net worth grows by a considerable percentage, such as 20%, it's wise to reassess how these assets will be managed and distributed.

Changes in Tax Laws

Changes in tax laws can significantly impact your estate plan. With tax laws frequently evolving, it's important to stay informed, as these changes can influence the overall value of your estate and determine what beneficiaries receive.

For example, in 2023, the federal estate tax exemption was raised to $12.92 million per individual. If you expect your estate to exceed this threshold, you may need to adjust your estate plan, possibly by incorporating more assets into trusts. Consulting a tax advisor who specializes in estate planning will ensure that you remain compliant and can maximize any tax benefits available to you.

Changes in Your Health

Your health status can also prompt a review of your estate plan. As you age or if you face a chronic illness, updating your healthcare directives is essential. These documents express your preferences for medical treatment if you're unable to communicate them yourself.

Additionally, if your health declines, you may want to reconsider who you designate as your power of attorney for healthcare decisions. Family relationships can change, influencing your choice of who should advocate for you in critical medical situations. It's important to keep these directives current; a Stat News report indicates that 80% of people will need long-term care at some point, so having a clear plan is imperative.

Our DIY System for Estate Plan Updates

In today’s digital age, reviewing and updating your estate plan doesn’t have to be overwhelming. Thanks to user-friendly tools, you can keep your documents up to date with just a few clicks. Here’s how to make the process manageable:

Easy-to-Use Tools

Many online platforms provide clear systems for managing your estate plan. These tools allow easy access to your documents and enable you to make necessary updates without extensive legal consultations for every adjustment. By consistently logging into these platforms, you can quickly review and modify your estate plan whenever significant life changes occur.

Expert Guidance

While many updates can be done independently, having access to expert guidance is beneficial for more complex situations. Our platform offers resources and advice through a live chat from estate planning professionals, which can be invaluable for answering questions and ensuring your estate plan reflects your wishes and needs.

Securing Your Legacy

Regularly reviewing and updating your estate plan is crucial. It is not just about ensuring your documents are valid; it is about protecting your legacy and providing peace of mind for you and your loved ones. Major life events, asset changes, shifts in tax laws, and evolving health conditions all warrant a fresh look at your estate planning documents.

By utilizing easy-to-use online tools, ensuring compliance with state laws, and seeking expert guidance when needed, you can keep your estate plan current and aligned with your wishes. Consider taking time now to ensure your estate plan is in order; this proactive step will help you secure peace of mind for the future. With our platform you can update you estate plan at any time at no additional cost! To get started click here!