grandchildren

9 Signs It's Time to Update Your Estate Plan

9 Signs It's Time to Update Your Estate Plan

You finally took the plunge and created an estate plan. Wonderful. Awesome. High five. But now that you have a plan, how often do you need to revisit or update it?

Rather than updating your estate plan every X number of years, we recommend revisiting and (potentially) revising it whenever you experience a significant life change. A will or trust you signed years ago might no longer reflect what you care about.

Consider reviewing and/or updating your estate plan if you have experienced any of these changes:

Use RMDs to Fund a 529 Account

Use RMDs to Fund a 529 Account

A 529 account (or 529 plan) is a tax-advantaged savings plan designed to encourage saving for future college costs. The different types and mechanics of 529 plans are best saved for another blog post. For now, the important thing to know is that there are three main benefits to using your RMDs to fund a 529 plan:

1. Earnings grow tax-free.

Usually, you have to pay income taxes on RMDs. If you then invest the RMD, you will likely pay a second round of taxes on those earnings down the road. On the other hand, if you contribute your RMD to a grandchild's 529 account, you will still pay income tax on the RMD, but the money you invest in the 529 account will grow tax-deferred. And if the money is later used for qualified education expenses, the entire amount is available tax-free.