Your estate plan should not be static because your life is always changing. You may have put great care into the initial formation of your plan, but if you have not recently reviewed it, your plan is probably outdated.
Some people get into a routine of reviewing their estate plans every year or two. This can be beneficial because laws are frequently changing. As laws change, your estate planning strategy may also change to help you make the most of your estate plan.
Even though regular updates can be beneficial, you should be especially certain to update your estate plan after significant events in your life or the lives of those named in your estate plan. If your estate plan does not reflect your current situation, it could cause unintended problems, such as family fights, delays in implementation or even litigation.
Personal changes that should trigger an update
Some changes to your life that may warrant updates to your estate plan, include:
- Getting married or remarried
- Getting divorced
- Having a new child
- Changing your assets significantly
- Becoming seriously ill or injured
- Buying or selling a business
- Moving out of state
You may also need to update your estate plan if there are changes in the lives of your loved ones. Sometimes the people you initially chose to fulfill certain responsibilities may no longer be appropriate to take on those roles. Sometimes your relationships change, which affects how you would like your assets distributed.
Your life, the lives of your loved ones and the laws governing estate plans are always changing, which means your estate plan should change too. Review your estate plan as needed to make sure it reflects your current goals and life situation.