The Importance of Regularly Reviewing and Updating Your Estate Plan

Creating an estate plan is a vital step in ensuring that your assets are managed and distributed according to your wishes after your death. However, the creation of an estate plan is not a one-off task. It is essential to review and update your estate plan regularly to reflect changes in your life, legislation, and financial circumstances. Here, we will explore the reasons why this is so important.

Life Changes

Our lives are constantly changing, and significant life events can have a major impact on your estate plan. Events such as marriage, divorce, the birth of a child or grandchild, or the death of a beneficiary should prompt a review of your estate plan. These events can alter your intentions and how you wish your estate to be divided.

For instance, if you get married, you might want to include your new spouse as a beneficiary. Conversely, if you get divorced, you may want to remove your ex-spouse from your will to prevent them from inheriting your assets. The birth of a child or grandchild may also necessitate updating your will to include provisions for their future.

Changes in Assets

Your financial situation can change significantly over time. You may acquire new assets, sell off property, or experience changes in the value of your investments. These changes should be reflected in your estate plan to ensure that your assets are distributed according to your current wishes.

If you purchase a new home, for example, you will want to ensure that this is included in your will. Similarly, if you sell a significant asset, you may need to update your plan to remove it. Regular reviews will help ensure that your estate plan accurately reflects your current financial status.

Changes in Legislation

Laws relating to estate planning, inheritance tax, and wills can change over time. These changes can have a significant impact on your estate plan. Regularly reviewing your estate plan with a solicitor can help ensure that it remains compliant with current legislation and that you are taking full advantage of any tax benefits or reliefs that are available.

For example, changes in inheritance tax rules can affect how much of your estate is passed on to your beneficiaries versus how much is paid in tax. Keeping your estate plan up-to-date can help minimise the tax burden on your estate.

Changes in Personal Preferences

As time passes, your personal preferences and relationships may change. You may develop closer relationships with certain family members or friends, or conversely, become estranged from others. Regular reviews of your estate plan allow you to adjust your bequests to reflect these changing dynamics.

Perhaps you initially included a close friend as a significant beneficiary, but over time your relationship has changed, and you now wish to leave more to a family member instead. Updating your estate plan ensures that your current wishes are accurately documented.

Ensuring Executors and Trustees Are Up-to-Date

The people you appoint as executors and trustees have important roles in managing and distributing your estate. Over time, circumstances may change that affect their ability to serve in these roles. They may become ill, move away, or pass away. Regularly reviewing your estate plan allows you to ensure that the individuals you have appointed are still able and willing to fulfil these responsibilities.

Conclusion

In summary, regularly reviewing and updating your estate plan is crucial to ensuring that your wishes are accurately reflected and that your assets are managed and distributed according to your intentions. Life changes, changes in assets, legislative updates, shifts in personal preferences, and the suitability of executors and trustees all necessitate periodic reviews. By working closely with a solicitor, you can keep your estate plan up-to-date and provide peace of mind for you and your loved ones.

If you haven’t reviewed your estate plan recently, now is a good time to do so. Contact our Private Client Team to discuss any changes that may be necessary and ensure that your estate plan continues to serve your needs.  They can be reached on 01324 622 888 or contact help@randa-fa.co.uk and we would be delighted to assist.