Seven Reasons to Update Your Estate Plan
Estate planning can help you carry out your wishes if you are incapacitated or deceased. It gives you some control when your life gets out of control. Your estate plans are based on your goals, objectives, and needs, which may change over time. Your goals for your estate plan created years ago may differ from your goals now. With a few exceptions, estate planning documents can change as you do. Updating your estate plans is essential for several reasons.
- Your Circumstances
Life is dynamic, and your circumstances may change over time. Events like marriage, divorce, the birth or adoption of children or grandchildren, or the death of a loved one can significantly impact your estate plans. Updating your documents ensures they accurately reflect your current situation and wishes.
- Your Financial Situation
Significant changes in your financial situation, such as inheriting a large sum of money, starting a business, or experiencing a financial downturn, should lead to adjustments in your estate plans. Update your plans to account for these changes so your assets will be distributed according to your wishes.
- Tax Laws
Tax laws are amended and repealed, and new ones pass. Judicial and tax authority interpretations change. Many things may happen that affect your planned asset distribution. Reviewing and updating your estate plans regularly allows you to take advantage of any tax-saving strategies and ensure that your plans remain compliant with current laws.
- Beneficiaries or Executors
Relationships with beneficiaries or executors may evolve. You may want to add or remove beneficiaries, change the distribution of assets, or appoint new executors or trustees. You may wish to support a charity you didn’t know about when you created your will. You may no longer trust the person you named as executor, or they may have moved. Updating your estate plans allows you to reflect these changes and make sure that your wishes are accurately represented.
- Asset Ownership
Buying or selling assets, such as investments, real estate, or business interests, may require updates to your estate plans. You can avoid potential disputes or complications during the probate process by ensuring that your plans accurately reflect your current asset ownership.
- Healthcare and End-of-Life Preferences
Your preferences regarding healthcare decisions or end-of-life care may change as you age, experience a decline in health, or witness a loved one’s end-of-life experience. Updating healthcare directives or powers of attorney helps ensure your wishes concerning medical treatment and end-of-life care are respected.
- Protecting Minor Children
If you have children born after your estate plan was written, update it to designate guardians to care for them in the event of your incapacity or death. Also, create a trust to help pay for their expenses if you unexpectedly pass away. Regularly reviewing and updating these designations ensures your children are protected and cared for according to your wishes.
Your estate plans should be regularly updated to ensure they are current, reflect your wishes, and provide maximum protection for your assets and loved ones. It’s advisable to review your estate plans at least every few years or when significant life changes occur.
Our Wills & Estates Services
If you live in Bucks County, Pennsylvania, including Holland, Southampton, Feasterville, Newtown, Richboro, and Langhorne, and have estate planning questions, want a will, or would like to update one, contact The Law Office of Neal E. Newman at 267-566-0173. We’re here to help.
Learn more about our Wills & Estates services here.