Estate plans play a crucial role in safeguarding your assets. However, it is a common misconception that, once you create your estate plan, you can leave it as it is.
The reality is that estate plans require regular updates to stay relevant and effective.
Life events
Recent studies have shown that approximately 27% of adults aged 18 to 34 have an estate plan in place. During these early adult years, you can face many life-changing events. This is why it is important to consider routine updates to your estate plan, allowing you to adjust it for any significant life events that may occur. Events like the birth of a child, entering into marriage or going through a divorce can have a profound impact on your estate plan.
Changes in assets
As time goes by, your financial situation may change. You might acquire new assets, such as real estate or investments, which can significantly affect the overall value of your estate. Regularly reviewing your estate plan ensures that all your assets are properly accounted for in your plan.
Evolving laws
Estate planning laws and regulations can change over time. By revisiting your estate plan on a regular basis, you have the opportunity to modify it in accordance with any alterations in legal requirements. This is particularly important because failing to comply with estate planning laws could result in the invalidation of your estate plan by the courts.
The time and effort invested in creating an estate plan are substantial. To protect this investment and ensure your family’s access to your assets, it is important to keep your estate plan updated with annual reviews.