Estate planning is not something you do once and forget about. It is an ongoing process that every adult should begin early in life. Life changes, your circumstances will change, and so should your estate plan so it reflects your wishes at any given moment. Key reasons to update your estate plan include:
Change in life circumstances
Any time you have a significant life change, such as marriage, the birth of a child, divorce or the death of a loved one, you should immediately look at your estate plan to determine whether you need to alter it. For example, if you have a new child, you want to add them as a beneficiary.
Financial changes
Most people’s financial situations change and fluctuate over time. Your income can change, as can your investments. You may also acquire or sell assets. An increase or decrease in wealth may necessitate an adjustment to your estate plan to protect your beneficiaries.
Legal changes
Laws regarding estate planning and taxation change constantly. For this reason, you should stay on top of your estate plan to ensure it complies with the law.
Remember that you may very well be compliant when you create your estate plan, but years later, after a financial downturn, for example, you might need to adjust your documents to minimize tax liabilities.
Peace of mind
Regularly monitoring your estate plan and sharing any changes you make with your attorney can ensure that it is always current, compliant and representative of your wishes.
Even if you do not experience major changes in your life, reviewing your estate plan with your attorney every three years is a good idea to ensure you do not need to change or alter anything, and if you do, that your attorney has the time to do it now.
