Estate planning, when done right, ensures your assets are being transferred into trustworthy hands, keeping you from the throngs or probate court. When more hands are put in the picture, however, it’s time to give that plan another look.
Once you’ve experienced a life-changing situation or tax laws have changed, you should revisit estate plan and make the necessary adjustments to cover all changes. Here are the situations that necessitate you to revisit estate plan.
Your Life Situation Changes
Should a major event happen in your life, don’t wait to revisit estate plan. If you’ve gotten married or divorced your spouse, your plan needs to be modified. Additionally, if you’ve had children, you should make sure the estate plan includes them, so they become future beneficiaries.
If the Estate Plan is Outdated
If your estate plan is more than three years old, it may be considered outdated. Estate planning lawyers recommend that you revisit your estate plan every three years, at least to ensure that all parameters of the plan are still being met. Also, you’ll make yourself aware of any changes that may have been overlooked.
Any Changes to Tax Laws and Legalities
Local or wider changes to tax laws need to be addressed when they take place as they can affect your estate plan. Talk to your estate planning attorney right away about updating the plan, so it reflects tax law changes made by your state or jurisdiction.
If You’ve Moved to Another State
On another note, if you’ve changed area codes, you should revisit the estate plan as estate laws differ depending on the state you live in. Ensure your estate plan matches up with state laws and regulations once you’ve moved, confirming its validity. The sooner you do it, the earlier you can spot these changes and adjust your plan accordingly.