All adults should have an estate plan that outlines their wishes for what will happen with their finances and medical care if they become incapacitated, as well as their wishes for assets after they pass away. Some people like to think of this as a one-and-done task, but it’s critical that everyone takes the time to review and update the plan.
At a minimum, you should review your estate plan once every three to five years. It’s also necessary to do this if you have major life changes.
What life changes require an estate plan review?
If you have major changes to your family structure or composition, you may need to update your estate plan. This includes getting married, having children, adopting a child or getting divorced. You should also review it when your children become adults or if you have grandchildren.
Reviewing your estate plan is also necessary if someone named in your estate plan passes away or becomes incapacitated. Another reason for a review is if you need to remove someone from the estate plan because your relationship with them has changed.
Major changes in assets, including buying them or selling them, also necessitate a review. The only assets in your estate plan should be the ones you own, so you have to remove any that you don’t own now. Adding assets to the estate plan as you purchase them is also necessary.
Each time you review or update your estate plan, you should ensure that the plan complies with current laws. Working with someone familiar with applicable laws may be beneficial.
