Estate planning involves making crucial decisions about your future and the future of your loved ones. Many people create an estate plan and then forget about it, thinking the job is done. However, life is full of changes, and your estate plan should reflect those changes. Regular updates ensure that your strategy aligns with your current wishes and circumstances.
Is it time to revise your estate plan?
You should review and potentially update your estate plan every three to five years. However, certain life events may necessitate more frequent updates. These events include:
- Marriage
- Divorce
- Birth of a child
- Death of a beneficiary
- Changes in financial status
- Changes in tax laws
Additionally, moving to a different state or changes in your health may impact your estate plan may also require an update. In Michigan, any property must go through probate, making it crucial to update your plan if you acquire property there.
Benefits of updating your estate plan
Keeping your estate plan current offers several benefits. It ensures proper asset distribution according to your wishes and reduces the potential for family disputes. An updated plan can also minimize taxes and legal fees. You gain peace of mind knowing you protect your loved ones and clearly express your intentions.
Additionally, a current estate plan allows you to appoint guardians for minor children and ensure your healthcare directives reflect your wishes.
In conclusion, updating your estate plan regularly is essential. Life changes, and so should your estate plan. Keeping it current protects your assets and provides for your loved ones without problems.
