Estate planning takes time and will require ongoing contributions to maintain a functional strategy. Certain factors can complicate your planning efforts and may need more of your focus and attention.
Knowing what could impact your plan can help you make more confident decisions. With a strategy that aligns with your lifestyle, you can have peace of mind that your assets will end up where you want them.
Wealth
The value of your assets can make your estate plan look different from someone else’s. Some examples of wealth that will require careful planning include the following:
- You own a business
- You inherited a lot of money
- You have a large investment portfolio
- You have real estate investments
Beneficiaries
Another factor that could complicate your estate plan is the number of beneficiaries you have. According to CNBC, beneficiaries could benefit from your investments, personal property and bank accounts, among other things. Spreading your wealth out among a large group of people will require you to think carefully about the value you plan to distribute to each person.
If you have experienced divorce, remarriage, adoption or the birth of grandchildren, you might have a growing list of beneficiaries. You may want to provide a brief explanation of your intentions to your heirs to reduce conflict and misunderstanding.
Throughout time, make sure you keep your plan updated. A lot of money and a lot of beneficiaries may increase the chances of you needing to modify or update your strategy. Regularly assessing your plan can help you preserve its function throughout your life.
