Estate plans are a great way to ensure your estate is handled according to your wishes after you pass or if you become incapacitated. However, most experts agree that you’ll want to revisit your estate plan every few years. Why? Because the plan you established five years ago might be as relevant today.
Below are just a few of the reasons you should renew your estate plan every 3-5 years.
You could have experienced a major life change
Did your adult children have a new baby, and you want to include your new grandchild in your estate plan? Or, have you acquired (or sold) new assets, such as a house, boat, condominium, or vacation home? These are all instances in which you might want to revisit your estate plan.
The same holds true if you’ve divorced your spouse, especially if you’ve since remarried. If this is the case, you’ll want to add your new spouse (and remove your former). On the other hand, if you have a long-term partner who is not in your current estate plan but you want to make your partner is protected, adding them to your estate plan can help ensure that happens.
You purchased a life insurance policy
If you’ve purchased a life insurance policy within the past several years, you may want to talk to your CPA about the benefits of transferring ownership of that policy to a life insurance plan trust. This will ensure that the value of that policy is kept out of (and separate from) your estate. For more information about how life insurance plan trusts work, be sure to speak with your tax advisor.
You want to amend your beneficiaries
Do you have prior beneficiaries that have predeceased you? Or, have you come to the difficult decision that you want to disinherit someone you included in your estate plan when you established it? These are also good reasons to sit down with your CPA. Not only will this help ensure that your estate is managed and overseen according to your wishes, it will help ensure that your assets are redisposed properly.
Regardless as to whether you’re interested in learning more about the benefits of establishing an estate plan, or you want to schedule a time to revisit a plan you set up in the past, we can help. Call the office of Hughes, Snell & Co., PA today to speak with a local expert.