How regularly should you update your estate plan?

On Behalf of | Jan 17, 2022 | Estate Planning |

Having an estate plan is a step in the right direction. However, it is equally important to have it updated in line with changes in your life. Updating your estate plans is in the best interests of your loved ones and your estate, but it does beg the question of how periodic such reviews should be.

There is no universal answer to this, and it all depends on the changes in your life. Below are such instances that may warrant a revision of your current estate plans.

Family changes

You probably had your former spouse in your will and gave them powers of attorney to make decisions on your behalf. After a divorce, it is necessary to relook at your estate plans and effect the new changes. If you fail to delist your ex-spouse among your beneficiaries, they may be entitled to a share of your estate after you are gone.

In the same breath, if you have welcomed a new member in the family or a beneficiary has passed, you need to update your estate plans to reflect that.

Relocation

If you have changed states, you could be subject to a different tax regime which you need to consider when planning your estate’s future. Additionally, the legality of some documents may be an issue when you change jurisdictions due to the varying state laws.

Other reasons

There are several other reasons for revising your estate plans. For instance, do you need to change your executor? Has there been a significant change in your assets? Do you wish to set up a trust? All these instances are enough to warrant a modification of your existing estate plans.

In conclusion, the most crucial thing when making an estate plan is securing your loved one’s interests. You can only do this by having a solid plan that will provide clear directions on how your estate should be dealt with when you are no longer around.