Why Should You Review Your Estate Plan Annually?
Estate planning is essential in protecting your legacy and ensuring your wishes are honored, but creating an estate plan is not the end of the journey. Your estate plan should evolve as your life and circumstances change. An estate planning annual review is the best way to align it with your current needs and goals.
Why Regular Reviews Matter
Life is constantly changing, and so are the laws that govern estate planning. Without regular updates, your estate plan may fail to account for significant life events or legislative changes that impact your legal standing. This can leave your loved ones vulnerable to unnecessary complications or disputes.
Your estate plan should reflect your current reality. It may not effectively fulfill your wishes if it doesn’t account for new family members, divorces, major financial changes, or updated laws.
When Should You Review Your Estate Plan?
Here are key triggers that signal a review:
Life Changes
- Marriage or divorce
- Birth of a child or grandchild
- A child reaching adulthood
- Loss of a loved one
Legislative Updates
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- Changes in tax laws or inheritance laws
- Updates to state or federal estate planning regulations
Evolving Financial or Family Circumstances
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- Substantial growth in personal assets
- Changes in family dynamics or relationships
- Retirement or other significant life milestones
What an Annual Review Entails
An estate plan review is not just about skimming through documents; it’s about ensuring everything is in order and reflects your current needs. Here is what a thorough review should include:
- Updating Beneficiaries: Confirm that all designations on wills, trusts, insurance policies, and retirement accounts are current and accurate.
- Evaluating Personal Representatives and Trustees: Are the individuals you’ve chosen still the right fit for these important roles?
- Is Your Trust Funded?: Verify that all assets are properly titled or assigned to your trust, where applicable.
- Reviewing Healthcare Directives: Update any advance healthcare directives or powers of attorney as necessary.
- Checking for Legal Compliance: Make sure your plan adheres to any recent legislative changes that may affect its validity.
The Value of Staying Pro-active
Regular reviews of your estate plan can save your family from stress, financial loss, and legal complications. It ensures that your intentions are honored, your legacy is preserved, and your loved ones are provided for.
Don’t wait for a major life event to trigger a review. Make annual updates, no less than once every three years, a priority to maintain peace of mind for yourself and your family.
Schedule your Annual Review
If you are a Legal Life Plan Protector Program Member, reach out to schedule your 1-hr appointment with Mark by contacting Bill Poulson. Bill can be reached at bill@idahoestateplanning.com or call 208-939-7658.
If you have a different estate planning attorney, this is a good time to reach out and reconnect. Of course, Idaho Estate Planning can assist with any of your needs including reinstating an out-of-state trust or will.
Learn more by Listening to the Senior Matters Podcast
To learn more about the importance of estate plan reviews, listen to Mark E. Wight’s discussion on the Senior Matters Podcast. Visit www.idahoestateplanning.com/podcast.
