Creating an estate plan to protect your financial future and that of your family is just the first step in the estate planning process. Once those documents are executed, you will still need to review your plan annually to ensure it continues to reflect your needs and achieve your goals. Here are 5 reasons that can trigger the need to review your existing estate plan:
1. Family changes
Marriage, divorce, birth, and death are four family changes that should prompt an estate plan review. If one of your beneficiaries dies, you will need to remove them from your estate plan. A new child or grandchild means adding beneficiaries. If your daughter gets a divorce, you will likely want to remove her ex from your estate plan but keep their children in. These circumstances can also trigger changes to those people designated as guardians, executors or health care agents.
2. Health changes
The state of your own health may dictate changes to your estate plan, especially when it comes to long-term care. You may want to help a family member who has no other resources for long-term care, or if you yourself suddenly need long-term care, you may need to provide a trustee with new instructions on the kind of care you want - i.e., staying at home with in-home help or paying to live in a senior living facility.
3. Work changes
You may suddenly want - or need - to retire, which could necessitate withdrawing from your IRA funds to support yourself instead of contributing more. If you have a family business, you may want to sell it or convert a sole proprietorship into an LLC or corporation, which could mean a significant change for your estate plan.
4. Market changes
If the total value of your estate has fluctuated by more or less than 20 percent, this should prompt an estate plan review. A significant gain could provide you with assets you may want to gift to children or grandchildren to reduce or remove estate taxes.
5. Law changes
Tax law changes all the time, so reviewing your plan at least once a year is the best way to either take advantage of any new changes that could benefit you or revise your plan so these changes do not adversely impact your estate.
This article is a service of the Law Office of Keoni Souza, LLC, an estate planning law firm in Honolulu, Hawaii. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session, ™ during which you will get more financially organized than you’ve ever been before, and make all the best choices for the people you love. You can begin by contacting our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.
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