5 Indicators That You Should Update Your Estate Plan

When choosing to build out an estate plan, your focus is redirected to the people and charities you care about most. While enjoying your wealth right now is rewarding, there can be a lasting impact on those you hold close by ensuring your remaining assets are distributed accordingly. However, if it has been a while since you last reviewed your estate plan, it may be time to update it. Here are five indicators that should have you revising your assets so you can better share them with others when the time comes.

A Significant Life Event

Whether it is welcoming your first child, changing your marital status (i.e., married or divorced), denoting a primary agent, or making significant changes in your assets, these are all considered major life events that are worthy of updating your estate plan. You want to make sure that your assets are distributed to the correct individuals or charities and that the money is divided in a way that you deem fair. Also, if the primary agent is deceased or is no longer your desired choice for the role, updating your plan can ensure that your estate plan is executed the way you describe.

Changing Laws

Any time there are changes to the tax laws, you should schedule a call or meeting with your estate planning attorney. Failing to do so can lead to complications and incorrect distribution when it comes time to oversee the execution of your estate plan. No matter if it is a federal or state tax law that causes a change, it is in your best interest to make the necessary changes that you and your local attorney decide on. Part of this process may be requesting new documents (i.e., power of attorney) to ensure that everything is correct according to your plan.

Much Time Has Passed

Many planners recommend that clients reassess their estate plans annually; however, this is dependent upon the attorney and the individual. It is important, though, to revisit it regularly so that there are no major overhauls in the future, unless otherwise necessary due to changes in the laws. Taking the time to update your plan will give you greater peace of mind in making sure that your current wishes are noted and will be distributed accordingly should something happen.

Mental Capacity Concerns

One reason to regularly update your estate plan is the idea of your mental capacity becoming a concern. Too often, children are left to wonder what their parents would have wanted, making decisions that were never the desire of the deceased individual. No one wants to have their state of mind come into question, so making sure that you meet with your attorney to discuss your wishes while you still have the mental faculties to do so is essential. If you wait too long, and the question of your mental capacity comes into play, documentation from a doctor may be necessary before changes are made to your estate plan.

Your Age

While this may not come as a surprise, your age should be an indicator as to when you update your estate plan. It is recommended that younger individuals develop an estate plan early on; however, if you have not revisited yours and are now much older, it’s important to look at your existing plan and determine if more definitive or significant adjustments are necessary. Recognizing that your assets will no longer be yours to use can help you to identify how to distribute your wealth in the most impactful way.

Finding an expert to help you navigate this process is one of the best steps you can take toward a successful estate plan. Making sure your wealth is secure in a plan that matches your unique desires can help you feel more confident as you look ahead to the future.

About the Author

Taylor Steele, CFP®, CLU®, AIF®, EA* is a Branch Manager and Managing Partner at Cadent Capital. Taylor obtained both his Certified Financial Planner™ certification and Chartered Life Underwriter (CLU®) marks. He is also an Accredited Investment Fiduciary (AIF®) and Enrolled Agent*. As one of the two second-generation owners, he is part of a team devoted to helping clients build better futures by making better decisions. If you’re ready to let us help you better prepare for tax season, call us at (972) 777-4991 or visit our website.

*Taylor’s activities as an Enrolled Agent are independent of Raymond James

Any opinions are those of Taylor Steele and not necessarily those of Raymond James.  Expressions of opinion are as of this date and are subject to change without notice.  The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any information is not a complete summary or statement of all available data necessary for making a decision and does not constitute a recommendation.

Please note, neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax or legal issues, these matters should be discussed with the appropriate professional.