Estate planning is not a one-time event; it is an ongoing process that requires regular attention and updates. As life circumstances change, so too should your estate plan. Understanding how often to review your estate plan can help ensure that it remains aligned with your current wishes and needs. Here are some key factors to consider when determining how frequently you should review your estate plan.
1. Major Life Changes
Significant life events often necessitate a review of your estate plan. Consider updating your plan after any of the following:
- Marriage or Divorce: Changes in marital status can impact beneficiary designations and guardianship arrangements.
- Birth or Adoption of a Child: New dependents should be included in your estate plan, and guardianship decisions need to be made.
- Death of a Beneficiary or Executor: The passing of a key person in your estate plan may require you to designate new beneficiaries or an executor.
- Health Changes: If you experience significant health changes, it may be time to revisit your healthcare directives and powers of attorney.
2. Changes in Financial Situation
Your financial landscape can shift due to various factors, such as:
- Acquisition of New Assets: Purchasing property, investments, or starting a business may require updates to your asset distribution plans.
- Changes in Income: A significant increase or decrease in income can affect your tax situation and overall estate planning strategy.
- Tax Law Changes: Changes in federal or state tax laws can impact how your estate is taxed upon your death, necessitating a review of your estate plan.
3. Regular Reviews
Even in the absence of major life changes, it’s advisable to conduct regular reviews of your estate plan. Many experts recommend reviewing your estate plan every three to five years. This allows you to ensure that all documents are up-to-date and reflect any changes in laws or personal circumstances.
4. Communication with Your Attorney
Maintaining an open line of communication with your estate planning attorney is crucial. They can provide guidance on when updates are necessary and help you navigate any changes in laws that may affect your estate plan. Regular consultations can help keep your plan current and effective.
5. Documenting Your Wishes
As you review your estate plan, take the opportunity to document any changes clearly. Ensure that all relevant documents—such as wills, trusts, powers of attorney, and healthcare directives—are updated and reflect your current wishes.
Reviewing your estate plan regularly is essential for ensuring that it accurately reflects your wishes and adapts to life’s changes. The Eastman Law Firm specializes in helping clients navigate the complexities of estate planning and provides tailored guidance for maintaining effective plans.
To learn more about reviewing and updating your estate plan or to schedule a consultation, you can contact:
Name: The Eastman Law Firm
Address: 4901 W. 136th Street, Ste. 240Leawood, Kansas66224
Phone Number: (913) 908-9113
Website: www.theeastmanlawfirm.com
