Why Reviewing Your Will is Crucial for Your Financial Health
Creating a will is an essential step in securing your family’s financial future and ensuring your wishes are carried out after you’re gone. However, drafting a will isn’t a one-and done task. Just as your life evolves, so should your estate plan. This is where the importance of regularly reviewing your will with your financial advisor comes into play.
Life Changes Require Updates
Life is dynamic, filled with changes such as marriages, divorces, births, and deaths. Each significant life event can impact your financial situation and the distribution of your assets. Regularly reviewing your will with your financial advisor allows you to incorporate these changes, ensuring your estate plan remains current and aligned with your wishes.
Complex Financial Considerations
Your financial situation is likely to evolve over
time. Investments, retirement accounts, real estate holdings, and business interests may increase or decrease in value. Tax laws and regulations also change, affecting estate planning strategies. Align can help you navigate these complexities, ensuring your will is optimized to minimize tax liabilities and maximize asset protection.
Ensuring Beneficiary Designations Are Up to Date
Many assets, such as retirement accounts, life insurance policies, and investment accounts, pass directly to beneficiaries outside of probate. It’s crucial to review beneficiary designations regularly to ensure they correspond with your current wishes. Align assists in updating these designations to reflect changes in your life circumstances.
Protecting Against Family Conflict
A poorly drafted or outdated will can lead to family disputes and legal battles. By regularly reviewing your will you can address potential sources of conflict and ensure clarity in your estate plan. Your advisor can also provide guidance on how to communicate your wishes effectively to your loved ones, minimizing the risk of disputes after your passing.
Staying Informed About Legal Changes
Estate planning laws and regulations are subject to change at both the federal and state levels. These changes can have significant implications for your estate plan. Align works with your Estate Attorney to stay abreast of these legal developments and can advise you on how they may affect your estate planning strategy.
Peace of Mind
Regularly reviewing your will offers peace of mind, knowing that your estate plan is up to date and comprehensive. It provides an opportunity to discuss your financial goals and objectives, ensuring that your estate plan reflects your current priorities.
Your will is a critical component of your financial plan, and that plan is ever changing. To talk about financial planning, contact Align.