
Estate planning is an essential ongoing process that ensures your financial affairs are in order and your loved ones are protected. While updating your estate plan is important year-round, February presents the perfect opportunity to review and make necessary adjustments.
Why February?
The start of a new year brings fresh perspectives and resolutions. February is the ideal time to reflect on any changes that may have occurred over the holidays or during the previous year. By updating those changes now, you can ensure that your estate plan reflects what your current wishes are.
Reasons Your Estate Plan Needs to be Updated
Here are key reasons that trigger the need to update an estate plan:
- Tax Law Changes – Tax laws constantly change, and over time these changes may impact your estate. Regularly consulting with an estate planning professional ensures your beneficiaries are protected from unnecessary tax burdens and that your wealth is distributed efficiently.
- Updating Assets- Over the years, your financial portfolio changes. Whether you acquire new investments, sell, or inherit assets, it’s crucial to align your estate plan with your assets to prevent discrepancies.
- Relationship Changes-Your relationship with heirs, executors, or guardians may change. In the event of a falling out, someone moving away from the area, incapacity to assume their role, or death, your estate plan should reflect these changes to ensure your estate plan is managed according to your intentions.
- Move to a New State or Country – Each state and country has different laws regarding estate planning, trusts, taxes, and probate. If you’ve recently moved to a new state or country, reviewing your estate plan with an estate planning professional ensures compliance with local legal requirements and avoids potential complications.
- Life Events- any changes such as the birth of a child, passing of a loved one, marriage, divorce, or financial shifts can dramatically impact the distribution of your assets. Keeping your estate plan up to date ensures that your estate aligns with your current situation and wishes.
Estate Planning is an Ongoing Process
Estate planning is not a one and done process. It requires ongoing review and updates to keep up with all of the pertinent changes. Completing this task at least annually is essential to keeping your wishes up to date.
If you reside in the Denton area and need assistance and would like help from a non-attorney to put a trust in place, Brightside Financial is here to help. Contact us today to schedule a no-cost appointment and secure your financial legacy.