Drafting an estate plan is an important step. However, it is not a one-time event. Life can change quickly, and an estate plan should always represent your current wishes.
Failing to update your estate plan could mean that your wishes aren’t honored in terms of your healthcare, financial interests and assets. Outlined below are some key reasons to regularly update your estate plan.
Family circumstances
Family life doesn’t remain static for long. You may have just had a child, or your adult children may have started a family of their own. You always want to make sure that new additions are included in your estate plan. At the same time, you may want to remove beneficiaries. For example, one of your adult children may have been very successful in their career, meaning that they don’t need a financial inheritance. If you have divorced or married, you may also want to update your estate plan according to your marital status.
Your financial circumstances
Perhaps you have come into an inheritance of your own. Or, you may have sold your house and put that money into a savings account. This means that you have more assets to include in your estate plan. Any time your finances change significantly, it is worth taking another look at your plan.
Legal changes
The law on estate planning changes regularly. The government may have changed how they tax inheritances. Taking another look at your estate plan can ensure that your loved ones receive maximum value from your assets.
Generally, an estate plan should be reviewed every year or two. However, if your circumstances have changed significantly, reviewing your estate plan sooner is something to consider. Seeking legal guidance will help you navigate the process.