The Importance of Regularly Reviewing and Updating Your Estate Plan With a Certified Estate Planner
Estate planning is a crucial process that allows you to ensure your assets and affairs are managed and distributed according to your wishes after your passing. Creating an estate plan is not a one-time task; it requires ongoing review and updates to reflect changes in your life, family dynamics, financial situation, and the ever-changing legal landscape.
Learn more about the importance of regularly reviewing and updating your estate plan with a certified estate planner to ensure it remains effective and aligned with your current wishes.
Accommodate Life Changes
Life is unpredictable, and many significant events can occur over the years. Births, deaths, marriages, divorces, and changes in relationships with beneficiaries or executors can all impact your estate plan. When these life changes occur, it’s crucial to review and update your estate plan to ensure it reflects your current circumstances and intentions.
For example, if you welcome a new child or grandchild into your family, you may want to add them as beneficiaries to your will or set up a trust for their future needs. On the other hand, if you experience a change in your marital status, you may need to update your beneficiary designations or adjust the distribution of assets between your current spouse and children from a previous marriage.
Address Changes in Assets and Liabilities
Your financial situation is likely to evolve over time. You may acquire new assets, such as real estate, investments, or business interests, or sell existing assets. Additionally, your liabilities, such as mortgages or debts, may change as you pay them off or incur new ones.
To ensure that your estate plan accurately reflects your current financial standing, it’s essential to review and update it periodically. This can help avoid any unintended consequences and ensure your assets are distributed in the most tax-efficient and beneficial manner.
Stay Current with Tax Laws and Regulations
Tax laws and regulations are subject to change at both the federal and provincial levels. These changes can significantly impact your estate plan and have implications for estate taxes, capital gains taxes, and other financial matters.
By regularly reviewing your estate plan, you can work with your financial and legal advisors to identify any potential tax implications and make necessary adjustments to optimize tax efficiency for your beneficiaries.
Ensure Your Healthcare Wishes are Honored
An estate plan isn’t just about distributing assets; it also includes important healthcare directives such as a living will and a medical power of attorney. These documents outline your wishes for medical treatment and appoint someone you trust to make healthcare decisions on your behalf if you become unable to do so.
As your health or preferences may change over time, it’s essential to review and update these healthcare directives to ensure they accurately reflect your current wishes and that the designated person is still the appropriate choice.
Preserve Family Harmony
Failing to update your estate plan can lead to confusion, disputes, and conflicts among your loved ones after your passing. Outdated or unclear instructions may create misunderstandings and disagreements among beneficiaries, potentially leading to costly and emotionally draining legal battles.
By keeping your estate plan up to date and communicating any changes to your family, you can help preserve family harmony and ensure your intentions are carried out as smoothly as possible.
Review Fiduciary Appointments
Your estate plan likely includes the appointment of fiduciaries, such as executors, trustees, and guardians for minor children. These individuals play crucial roles in managing your affairs and carrying out your wishes.
Over time, circumstances may change, and the people you initially appointed may no longer be the best fit. Regularly reviewing and updating these appointments allows you to ensure that the individuals you trust to handle your affairs are still willing and able to do so.
Adapt to Changes in Personal Priorities
As you move through different stages of life, your personal priorities and goals may shift. Your estate plan should align with your current values and objectives.
For example, if you’ve become passionate about supporting a particular charity or cause, you may want to include charitable bequests or set up a charitable foundation as part of your estate plan.
Regularly reviewing and updating your estate plan with a certified estate planner is essential to ensure it remains relevant, effective, and aligned with your current wishes. Life changes, financial circumstances, tax laws, and personal priorities can all impact the provisions of your estate plan. By working with a qualified estate planning attorney and financial advisor, you can review your plan regularly and make any necessary adjustments to provide for your loved ones, protect your assets, and ensure your legacy is carried out as intended. Keep in mind that estate planning is an ongoing process, and staying proactive with updates will help you achieve your goals and provide peace of mind for you and your family.
Playcheques is Alberta’s solution to astute and efficient financial planning. With our team of professionals who are eager to advise our clients with educated and helpful advice, we strive to be the best financial planners in Calgary! For more information about our financial planner’s services at PlayCheques Financial Solutions, visit our website at https://www.playcheques.com, or call us at 403 837 9344!