Creating an estate plan is one of the most important duties that an adult needs to take care of, but it’s one that can’t be done once and then forgotten about. Instead, all estate plans need to be reviewed periodically, even if there’s no real reason to do it.
At a minimum, you should check your estate plan to ensure it still accurately relays your wishes every five years. There are also other situations that may require you to review and update it prior to that time.
Major life events require a review
Changes in your family structure dictate a review and possibly an update. Some of those changes include getting married or divorced. Having a new baby, adopting a child or having a child become an adult can also trigger a review.
You also need to do this if you have changes in your assets. Your assets must match the estate plan, so you need to remove anything that you sell or give away. Having assets named in the estate plan that you don’t own any longer can lead to the estate having to produce those assets, which can be costly.
The death of anyone named in the estate plan means you need to remove them. Whether they’re named as a beneficiary or have a duty in the plan, it’s critical to replace them once they pass away.
Getting your estate plan together can provide you with peace of mind since you know you’ve done what you can to provide instructions for your loved ones. They can have the benefit of having your plan to follow while they’re coping with the emotions of their loss. Working with someone may make it possible for you to get this plan together with as little stress as possible.