Why should I review my Estate Plan at least every three years?
Estate plans are prepared for the purpose of meeting the client's needs, their family and business needs. If a plan is drafted and stuck in a drawer for years, the chances are that it will be outdated by the time you need it. Life changes, laws change, and so does your wishes and expectations.
Major Life Changes:If a major life change occurs, it is time to review your estate plan. Major life changes could be:
- a marriage in the family
- birth of a child or grandchild
- new job
- moving to a new city
- opening a new business or close an existing one
- got life insurance or one expired
Any of these events can make your estate plan obsolete or in desperate need of updating.
You changed your mindAs life changes so do we. Many times, what is our situation today as a family, business person, or just a citizen of the world changes. Your priorities may change. Maybe you found that a child won the lottery and does not need your inheritance anymore or you are now more inclined to support a charity organization. If you changed your mind about anything, then it is time to review and update.
Changes in the LawThis is something you probably will not know unless you consult with your attorney. So, it is very important to check in with your attorney and review your plan every few years to see if the plan you have is the most appropriate and beneficial for you under the current law. For example, as of right now the tax exemption has been increased again. Those who planned a few years ago, very often had to worry about complex and tax planning because the tax exemption was very low while as of 2018, the tax exemption for a single person is over 11 million and now that same person's planning could be simplified for easier administration.