As people usher in the new year, it is natural to reflect on the past and contemplate resolutions for the future.
While estate planning might not be at the top of your list of exciting things to do, taking a moment to review and update your estate plan is a crucial step to ensuring your and your family’s wellbeing. The beginning of the year is the perfect time to take on this important task.
Reflecting on change
The start of the new year often comes with personal and family changes. Perhaps you welcomed a new member to the family, celebrated a marriage, or experienced the loss of a loved one. These life events can significantly affect your estate plan.
Even one small life change can throw off your entire plan in certain instances, which is why it is critical to review and update your estate planning documents regularly to reflect the current state of your life and your family, and ensure you document your wishes.
Evolving laws and regulations
Laws and regulations surrounding estate planning can change, affecting how your assets are distributed. Regularly reviewing your plan ensures it remains in compliance with the latest legal requirements. An outdated plan might not provide the protection you intended, making it essential to bring it up to date.
The new year often brings financial changes, such as new investments, property acquisitions, or changes to your income. You should ensure your estate plan includes these updates to ensure you distribute your assets according to your current financial situation and your wishes.
Protecting your loved ones
Your estate plan is a comprehensive tool to safeguard your loved ones. Regular reviews allow you to confirm that your designated beneficiaries, trustees, and guardianships are still suitable for your family.
These annual reviews provide you with an opportunity to make adjustments if circumstances change, ensuring your family is adequately prepared.
Taking the time to review and update your estate plan at the beginning of the year sets a positive tone for the months ahead. It is a proactive approach toward securing your family’s future, providing you with peace of mind and your loved ones with the protection they deserve.