Hope you are having a productive Monday. I am currently at the Apple store for the 4th time in a month finally picking up Daniel’s laptop. This is the 2nd repair since 2011. Ugh!!
Checking in is the name of the game. We’ve been having that discussion at home since Cameron just missed making the JV basketball team – the idea being that it’s important to check in regularly to make sure things are on track. The keyword is “regularly” because periodic checks allow you to make small improvements, or changes as the case may be, so that nothing gets too off-track. Ideally, regular analysis allows you to ensure you’re always moving in the right direction and in the case of estate planning, that your plan always works in the way you expect.
Wishing you Health, Happiness and a life filled with Passion!
5 Reasons Why You Need to Review Your Estate Plan
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:
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.
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.
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.
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.
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.
To review an existing estate plan or create one for yourself and your family, call our office today to schedule a time for us to sit down and talk about a Family Wealth Planning Session, where we can identify the best strategies for you and your family to ensure your legacy of love and financial security.