Estate planning is an ongoing process that involves strategizing and making decisions about your end-of-life desires. Allowing your plan to stagnate can have a detrimental impact on your future.
When you know the dangers of an outdated plan, you can put provisions in place to prevent making that mistake.
You relinquish control
Arguably the biggest benefit of planning your estate is the ability to maintain control over the distribution of your assets. An outdated plan could increase the chances of inheritance disputes which could completely jeopardize the value and meaning of your assets and legacy.
If you desire to keep control of what belongs to you, make sure you actively update your plan through big life changes. This could include marriage, divorce, remarriage, adoption, relocation, changes to tax laws, changes to beneficiaries or a substantial increase in your earnings. According to CNN, even if you have not experienced any notable changes in your life, consider reviewing your plan every three to five years.
You overlook clarification
Your surviving family members will appreciate the time you took to provide clarification in your plan. Using vague language, forgetting to update or failing to add context can cause confusion and increase the likelihood of a costly probate case.
Each time you review and update your estate plan, you may find places where adding context will greatly improve your strategy’s function and purpose. Looking at estate planning as a continual process will allow you to keep an open perspective as you fine-tune each aspect.