Creating an estate plan is one of the most essential things every adult must do. However, it is not only having an estate plan that matters but also keeping it up-to-date to ensure it always represents your current wishes and life circumstances.
There are times when it is wise to review your estate plan and ensure it still represents your wants, and if not, update it—some examples of times when you should do that are listed below.
Major life changes
Marriage, divorce, having a baby, or the passing of a loved one can all substantially impact the plans you have for your estate. Every time something significant happens, your estate plan is one of the first things you should review and update.
Financial changes
If you go through a significant increase or decrease in income, receive an inheritance or get a new job, you should make reviewing your estate plan a priority. Your documents should reflect your assets and liabilities correctly, and during financial changes, you should consider reviewing your estate plan.
Changes in relationships
Relationships change and evolve, and that is normal. You may also meet new people or have a falling out with someone who was a beneficiary at one point. Regularly reviewing your estate plan ensures that you have all the right people in there, and if necessary, you can remove people who you no longer want in your plan.
Regular reviews
As a rule of thumb, you should review your estate plan every three years and discuss it with your attorney. This gives you plenty of time in between reviews to think about what you want to keep and what you want to change.
Keeping your estate plan is vital to ensuring that it reflects your wishes and that your executor of choice honors those wishes. It is also critical to protecting your assets and family.