Building out your estate plan can help you create something that protects your wealth and supports the people you care most about. An outdated plan could undermine your efforts and have a devastating outcome.
Knowing when to update your plan can prevent disappointment and confusion. A periodic review will help you finetune each aspect to preserve your intentions.
One notable reason for an update is if your assets have grown significantly. This growth could occur due to an inheritance, a career advancement or an increase in the number of investments you have. Given how hard you work for your assets, you will want to verify that each has a place in your plan.
Another reason you might need to make changes to your plan is family dynamics. Changes such as marriage, divorce, remarriage, death, births of children or grandchildren, adoption and discord could interfere with your beneficiary designations. Updating your plan to reflect these changes can help ensure your money stays with the people you care about.
Other reasons you might need to update your plan include a move across state lines or changes to tax laws. According to CNN, experts recommend reviewing your estate plan once each year. Any changes you wish to make should take place in a timely manner. You will also want to make updates formally so they will stand in a court of law.
Your effort to maintain your estate plan over time will improve its clarity for your family. With the right approach, you may successfully mitigate discord and prevent a dispute later.