“Neglecting Your Estate Plan Could Cost You: Why Regular Reviews Are Crucial”

Title: The Importance of Regularly Reviewing and Updating Your Estate Plan

As financial planning experts emphasize the importance of creating and maintaining an estate plan, it becomes clear that this often overlooked aspect of financial management is crucial for ensuring your assets are distributed according to your wishes. While the process may not be enjoyable, it is a necessary step to take control of your financial future.

According to Eric Jochimsen, CFP, founder of JBY Financial Planning, reviewing your estate plan at least once a year is recommended to ensure it reflects your current life situation. Major life events such as moving, job changes, or family deaths may also necessitate a review of your estate plan to ensure it remains accurate and up-to-date.

Robert J. Allan, CFA, CFP, CPA, managing director at Welon Partners, highlights the “Core Four” estate planning documents that all individuals should have: a last will and testament, power(s) of attorney, advanced care directive, and a healthcare proxy. These documents play a crucial role in outlining how your estate will be settled, appointing someone to act on your behalf in case of incapacitation, and providing explicit directions for medical care.

The decision to create an estate plan is a personal one, but it is recommended to start the process after significant life events such as marriage, having children, or a death in the family. Deciding between a last will and a living trust, as well as choosing between in-person or online estate planning options, depends on the complexity of your estate and your budget.

While the cost of hiring an estate planning attorney can be significant, online services offer affordable packages that allow you to work directly with an attorney. Ultimately, the goal of creating an estate plan is to make life easier for your loved ones and ensure your last wishes are known.

In conclusion, regularly reviewing and updating your estate plan is essential to ensure it accurately reflects your current circumstances and wishes. While the process may not be exciting, it is a critical aspect of financial planning that should not be neglected. By taking the necessary steps to create and maintain an estate plan, you can secure your financial future and provide peace of mind for yourself and your loved ones.