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When should I update my estate plan?

On Behalf of | Oct 2, 2024 | Estate Administration

Keeping your estate plan up to date is important to ensure your estate follows your wishes. As life changes, you may need to update your estate plan to reflect new circumstances. Knowing when to make changes helps protect your assets and loved ones.

Major life events

Updating your estate plan after major life events is important. Changes such as marriage, divorce, the birth of a child, or the death of a family member can significantly impact your estate plan. For example, when you get married, you may need to add a spouse to your will, while a divorce may mean removing an ex-spouse from any inheritance. 

Changes in financial circumstances

A significant change in your financial situation is another reason to revisit your estate plan. Increases in wealth, purchasing property, or selling major assets could require updates to reflect your current financial status. Pennsylvania’s inheritance and estate tax laws affect how the estate distributes your assets. For example, Pennsylvania imposes an inheritance tax on certain beneficiaries, and failing to plan for these taxes can reduce the amount your heirs receive.

Legal changes

Estate laws can change, and those changes may affect your existing plan. A change in inheritance laws, tax regulations, or even federal laws could make parts of your estate plan outdated. Regularly reviewing your estate documents ensures they comply with current laws and provide the best protection for your beneficiaries.

Keeping your plan current

Regular attention to your estate plan helps ensure it continues to serve your long-term goals. Clear documentation makes it easier for your loved ones to carry out your wishes. By staying mindful of potential future needs, you can better protect your legacy.