Creating an estate plan is an integral part of every adult’s life, but contrary to what many people believe, it is not something you do once and never deal with again.
Life is full of changes, and your estate plan should reflect those changes as they happen so it is accurate and reflects your wishes.
Personal relationships
Relationships change and evolve; some last forever, and others end. Your estate plan should reflect these changes because, for example, if you become estranged from a member of your family who is a beneficiary in your estate plan, you should adjust your documents accordingly so that in the event of your death, it is clear that you do not want to include them as a beneficiary of your assets.
Significant events
Marriage, divorce, the birth of a child, adoption and the passing of a family member or close friend are good reasons to update your estate plan. If you have a new grandchild, for example, you may want to include them in your documents after they are born.
Financial ups and downs
Your financial situation can change throughout your life. You may experience a career advancement, receive an inheritance or go through another significant change in your financial life, and it is critical that your estate plan properly reflects where you are with your finances.
Regular reviews
Even if you do not go through anything significant over a specific time, like a marriage, divorce, financial downturn or change in relationships, you should have a schedule for how often you regularly review your estate plan. Speak with your attorney, who can assist you with this.
As a rule of thumb, if you do not go through any significant life changes, you should take the time to review your estate plan every three to five years to ensure everything in the documents is still the way you want it to be.
It is a vital part of responsible financial planning, and you will thank yourself for protecting your legacy, your assets and your family.