Estate planning isn’t a “set it and forget it” task. While writing a will or trust is a necessary step, the true value comes from ensuring that your documents accurately reflect your current life, aspirations, and relationships. Because circumstances might change over time, it’s a good idea to review your estate plan on a regular basis. But how do you know when it’s time to update?
A good rule of thumb is to revisit your estate planning every three to five years. Even if nothing significant has changed, laws, tax rules, and best practices alter, and a quick check can verify that everything remains consistent with your plans. However, certain life situations might require a timelier update.
Here are a few reasons to revisit estate planning:
Major Family Changes: A marriage, divorce, the birth or adoption of a child, or the death of a loved one frequently requires modifications to beneficiary, guardianship, and asset allocation. Additionally, if your children have reached adulthood, you may wish to reassess their positions in your estate plan or revise provisions for inheritance.
Financial Changes: Significant wealth rises or declines, real estate purchases or sales, business startups or closures, or new investments may require changes to trusts, tax strategies, or asset titling. Even refinancing a home or creating additional financial accounts might have an impact on your plan’s overall structure.
You Change Your Mind: It happens. You may change your mind about who should serve as executor or trustee or need to alter power of attorney documentation. When this happens, it’s best to talk with your attorney sooner rather than later for your peace of mind.
Ongoing estate planning helps ensure that your desires are carried out and your loved ones are protected. Contact us today at Tarantino Law, PLLC, to learn more.