Creating an estate plan gives you peace of mind because it assures you of a secure financial future and that the distribution of your assets will be according to your wishes. However, don’t set up your estate plan and forget about it.

Circumstances and priorities may change; hence, you must periodically review and update your estate plan to remain consistent with your goals and wishes. If you fail to update your estate plan, the dramatic shift in laws, taxes, and family dynamics can seriously affect your plan. The estate planning attorneys have the knowledge and experience to sort out this issue.

In this article, we will discuss the importance of periodic reviews of your estate plan and the measures you can take to keep it up-to-date and effective. Here are some reasons why a regular assessment of your estate plan is necessary.

Failure of a fiduciary or representative

The person you might have named in your outdated estate plan as your representative may be unfit after some time due to age, medical conditions, or death. Or, you may have someone trustworthy that you wish to name as your fiduciary. This review is an excellent step to ensuring a successful plan.

Need to update beneficiaries

You might have new family members, such as a new child or grandchild, that you would wish to have as beneficiaries. In unfortunate circumstances, your relationship with one of the beneficiaries might have changed, and you no longer want to include them in your plan. A trusted state attorney must do this review.

In the event of missing critical plan components

You might have created your Last Will as your only document. This document can only be helpful when you die. You must have other documents, such as Health Care Proxy, HIPPA, Durable Power of Attorney, and Living Will documents.

These documents are essential for your loved ones if you cannot independently make financial or medical decisions. Additionally, it is a requirement to update some records periodically. Some banks may only accept a Durable Power of Attorney if it has lasted for less than five years.

Changes in technology

It is vital to consider how digital assets such as online businesses, web domains, cryptocurrencies, and credit card reward points will transfer in your absence.

Moving or owning property out of state

The law governing probate and estate planning differs from state to state. In this case, you should work with your estate planning attorney to ensure that your plan adheres to the laws in your state. The property you own in another state must have a personal representative probating in that state; however, putting your property in a revocable trust can boost the efficiency of the change.

If your child might not benefit from the inheritance

Every parent would not want a situation where their heritage is subject to division with an ex-child or in cases where the beneficiary has credit problems. Unpaid creditors have claimed such inheritances; therefore, if you have these issues, please discuss them with your trustworthy attorney.

Estate tax liability

You must keep reviewing your plan regularly to avoid unnecessary taxes because the estate tax landscape is ever-changing. This option can save your estate some money.

In conclusion, a periodic review of your estate plan is vital to ensure your intentions or wishes are correctly executed, and your loved ones are protected in your absence. An un-updated estate plan can cause family disputes, unintended beneficiaries, and unexpected taxes.

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