Major life events such as weddings, divorce, the birth or adoption of children, or the death of a loved one can significantly impact your estate planning needs. Here are some important reasons why estate planning should be a continuous process and reviewing and updating your estate plan is necessary.
To Match With Changing Financial Circumstances
Do you remember the wealth you possessed when you started your career? Do you have the same size of wealth after 10, 20, or 30 years of starting your career? It can’t be! As you progress in your life, your wealth size and financial situation change along with it, and that’s the reason estate planning should be a continuous process in your life.
“Circumstances change. Financial needs change. Equations change. People shift to other countries. There are births, marriages, and deaths. All or some of these issues may need you to look at the estate planning you’ve done till then and make some adjustments if needed,” says Ameet Hariani, senior solicitor, arbitrator and mediator.
“So, just as you make New Year resolutions, make it a point to think once a year about whether you need to change or amend any of the estate planning you had worked on at the beginning of the year. As you know, wills can be easily changed or amended. Some changes are easy to make, some a little more complicated,” Hariani adds.
To Match With Changed Tax Laws
The government comes up with changes in the tax law every year, and down the line, in 10 or 20 years, significant changes may happen in the existing tax laws. It may result in an increase or decrease in your tax liability and thus impact your estate planning as well. You can amend the estate plan in sync with the impact of changes in the taxes from time to time.
To Protect The Interest Of Your Dependent Family Members
Estate plans can help you protect the interests of your loved ones, especially those who need your support. It helps in making changes in your estate planning depending on the changing financial needs of your family members. You can give the appropriate size of your wealth when reviewing your estate plan. Such adjustment can ensure adequate support to each and every family member over time.
When you update your estate plan regularly, it can also help you recognize the person whom you can trust to take care of your financial and health decisions if you become incapacitated.
By reviewing and updating your estate plan periodically, you can ensure that it remains current, relevant, and aligned with your goals and wishes.
The author is an Independent Financial Journalist