An estate plan exists to accomplish three things.
Preserving your accumulated wealth should be your first priority.
The second goal is to specify who will inherit your assets after your death.
The third goal is to indicate who will make health care and financial decisions on your behalf if you are unable.
As you age, you should consider updating your estate plan. There are several reasons why.
Your feelings may change over time
You should review your estate planning periodically in order to make sure you haven’t missed anything.
You may wish to appoint a new executor or in-charge health care agent, or you may want to change your wishes regarding wealth distribution.
You may experience a significant change in your health, wealth, and outlook on life during a five-, a 10-, or a 20-year period.
The key is to recognize the life events that may require updating your estate plan.
Recently married or divorced?
Your estate plan should certainly be revised if you have gotten married or divorced. According to some state laws, existing wills are nullified when someone gets married or divorced.
Change in net worth
It is possible that your wealth has increased significantly, which may impact the way you view how your assets should be distributed to your beneficiaries.
Perhaps you wish to give more (or less) to charity or to your heirs.
Did your executors or trustees change their minds about their roles?
Whenever someone is no longer interested in shouldering those responsibilities, no longer alive, or no longer in good health or of repute, then there is a need to revise the document.
Are you in the process of retiring, moving to another state, or buying or selling real estate? Each of these events call for a comprehensive estate plan review.
Working with a CFP® professional can help you find the path to achieving your financial goals.
Your goals may evolve over the years as a result of shifts in your lifestyle or circumstances, such as an inheritance, career change, marriage, house purchase, or a growing family.
