An estate plan typically needs to be updated after it’s been created. Neglecting the estate plan could mean that it’s outdated when you pass away, so it doesn’t accurately reflect your wishes or give your family the assets you intended for them to have.
When should you make these updates? There are two basic schools of thought, and either one – or a combination of the two – can work.
Making updates at key moments
You could identify some key moments in your life when updates may be necessary. When these things happen, you simply adjust your estate plan accordingly. Examples include:
- The birth of a child or grandchild
- Getting married or divorced
- Selling or acquiring major assets, such as a business or a home
- Substantial changes to your financial assets
- Being diagnosed with a serious medical condition
- Having a falling out with a beneficiary
Essentially, when something happens that means your estate plan no longer fits the realities of your life, you want to act quickly to update the plan to address these changes.
Conducting your review periodically
Another strategy is to do periodic reviews, such as going over your estate plan every two years. Even if you haven’t identified any key points that you want to address, this review may help you discover things that were overlooked or reconsider your options.
For some people, having a set schedule like this is also helpful because it’s easier to remember to conduct the review and make changes when necessary. This ensures that your estate plan is never significantly outdated. However, it could leave your plan out-of-date for a time if a significant change occurs. However you decide it’s best to keep your estate plan current, it’s crucial to have experienced legal guidance.