There is no perfect estate plan that, once created, will be able to withstand everything that life throws at you. The best plan is one that is both flexible and reliable, but even these will need to be changed periodically. Failing to make the proper changes can destroy all your hard work, so it’s important to know what causes the most common estate planning problems. In particular, there are three areas that you will need to pay attention to and make changes to your plan as changes in those areas occur.
Your Family Life
Much, if not most, of your estate planning efforts will be devoted to your family. Needless to say, if a change in your family situation occurs you will have to update your plan. Deaths, births, marriages and divorces should all prompt you to review your plan and make any necessary changes.
Your Financial Life
Whether you lose your job or find yourself in a much better financial situation than you were before, significant changes to your finances should also prompt you to reevaluate your plan. This is also true if the economy at large goes through a significant change, either for the better or for the worse.
The Law of the Land
Laws change, and new laws are constantly coming into effect. This is true at both the state and federal level, especially when it comes to issues such as inheritance and estate taxes. Because you probably won’t be aware of all the changes that take place every year, it’s best to contact your estate planning attorney on a yearly basis for information about the legal changes that might affect you and prompt you to change your plan.
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