Why You Need to Regularly Update Your Estate Plan

Author: Tom Momsen

If you’ve read our article on retirement advice and great retirement planning, then you know the importance of estate planning. Estate planning allows you to safeguard your wealth and ensure that your family and loved ones are well protected in case you pass away.

Considering how important estate planning is, it’s rather surprising how many people get it wrong or actually don’t know much about it. One grave mistake that people make is failing to regularly update it, as it’s a common misconception that estate planning only has to be done once. However, there will be times in your life when it’s necessary to update your will and other similar documents. If you’re confused as to why this is needed, then we’ve got just the thing for you.

In this article, we will share a brief explanation of what you need to review/update in your estate plan.

Why You Should Keep Your Estate Plan Up-to-Date

Your situation when you first drafted your documents may have considerably changed over time. For example, major life events may trigger different financial situations which means you should update your Will, your financial plan, and your Estate Plan.

Some life changes may even require you to completely refresh your plan; failing to do so may cause some serious consequences down the line. Whenever you experience a major change in your life, it would be in your best interest to review your estate planning documents.

When to Update Your Documents?

This question is rather tricky, as it will be different for everybody. To help simplify things, we’ve put together a brief list of common life events where it would be wise to review your estate planning documents:

• Marriage
• Divorce
• Having Children
• Death of a Loved One
• Major Financial Changes
• Major Investment Changes
• Major Changes in Your Business

It’s important to mention that wills are voided in the case of marriage or divorce. This means either of these two events will require you to revise your estate planning documents. Remember, this list is only meant to act as a guide. There may be situations that we didn’t mention on this list that merit a review and revision of your documents. For more specific questions, be sure to speak with your trusted estate planning specialist.

What Are the Other Ways to Protect Your Wealth?

Aside from having your estate planning documents in order, you may also want to take extra steps when it comes to protecting your wealth and your family’s interests.

One great way to do this is by making sure that the estate planning documents of your beneficiaries are also in order. Perhaps you are passing some of your assets to family members who don’t have a financial plan?

If you are planning to leave a large portion of your assets or a complex asset to a loved one, it may be a good idea for them to seek advice and plan ahead for the next steps. Failing to do this can cause serious problems for you in the case of the untimely passing of one of your beneficiaries.

 

When it comes to protecting your assets and your family, an estate plan can help you be confident your decision will be adhered to. While it may seem rather tedious to constantly keep your estate planning documents up to date, this is something that you’ll want to do if you want to avoid any complications down the line. Newcastle Financial Planning Group has personable, experienced, financial planners who can work with you to create a tailored inheritance plan, ensuring your finances and family are secure and protected for their future.

• Factors to Consider for Your Financial Retirement Plan
• Preparing for Retirement: Five Things to Think About
• Securing Your Future: 3 Retirement Myths You Should Ignore

If you are looking for financial advisers in Newcastle, book an initial chat with one of our estate planning specialists today!

 

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.