Having an estate plan gives you peace of mind knowing that you have taken the necessary steps to protect your future, assets, and family. However, as time goes by and circumstances change, keeping your estate plan up to date is equally as important. If your estate plan is not revised and kept up to date, it may not accomplish the goals that motivated you to create it in the first place.
But how do know it is time to update your estate plan? Generally, significant changes in your financial or personal circumstances should convince you to consider updating your estate plan. That being said, the need for updating your estate plan can arise from other reasons as well. These include:
Family developments
The birth or adoption of a child, divorce, marriage and the death of a loved one are some of the most common family developments that can necessitate a review of the estate plan. Health-related issues should also call for the review and update of the estate plan. As children grow into adults, so should you also review your estate plan to reflect the changes in circumstances.
Relocation from another state
Your estate plan will remain valid as long as it is executed in the state in which you created it. However, since probate and estate tax laws vary from state to state, it is important that you review and update your estate plan so it can be valid in your new state of residence.
Changes in state and federal laws
Changes to state and federal laws and regulations can greatly affect your existing estate plan. For instance, the SECURE Act that came into effect on Jan. 1, 2020, significantly impacts how IRAs and 401(K)s are handled.
An estate plan outlines what you would wish to happen to your assets when you pass on. Once you create an estate plan, it is important that you review and update it from time to time to reflect the changes in your circumstances and existing laws. An experienced estate planning attorney can help you review your estate plan and keep it up to date to reflect your current circumstances.