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When should you update your estate plan?

On Behalf of | Nov 11, 2022 | ESTATE PLANNING - Estate Planning

Creating an estate plan takes time and requires periodic updates. Forgetting to modify your plan as your life changes could have detrimental consequences for you and your heirs.

Knowing when to update your plan can help you avoid the costly repercussions of oversight. Your diligence can optimize the function of your plan and give you peace of mind.

Family dynamic

Changes to your family dynamic are one of the most common reasons you might need to modify your plan. Some examples include marriage, divorce, remarriage, adoption, the births of children or grandchildren, and death. Experiencing a strained relationship may also change who you name as beneficiary.

Relocation

Sometimes a move across state lines can interfere with your estate plan. Even if you feel confident about your strategy remaining intact, CNN suggests that you review your estate plan yearly to check for any discrepancies.

Asset growth

You might experience a significant increase in the value of your assets. This could happen in a number of ways including the following:

  • You experience growth in a business you own
  • You experience a substantial return on an investment
  • You receive an inheritance
  • You sell a business you own

Strategizing the protection and distribution of a larger sum of money may require you to adjust your original plan. You will want to take adequate steps to safeguard your assets, as well as verify that the beneficiaries you name are still the ones you want to inherit a large sum of money.

An outdated estate plan is not much better than having no plan at all. Keeping everything updated can help you maintain control of your assets while also protecting the future of the ones you love.