Estate planning is an essential part of adulthood. Managing one’s affairs to ensure that one’s assets are distributed according to one’s wishes and making the many decisions that come with that is critical and remains relevant indefinitely.
However, many people do not know if they should update their estate plans or how often. While it is widely accepted that everyone should update their estate plans as things in their lives change, here is a list of times when you should definitely consider it.
Life changes
One of the most important times to update your estate plan is when:
- You get married
- You get divorced
- You have a child
- You adopt a child
- One of your beneficiaries dies
- Your relationship with a beneficiary ends
Financial changes
In addition, you should also consider reviewing your estate plan when:
- You acquire a new asset
- You sell an asset
- There is a change in your income
- There is a change in your debt
In addition to changes you may experience in your life, you should also keep in mind that the laws change in every state over time, and you want to be sure that your estate plan complies with the laws of your state.
Regularly updating your estate plan for changes in the law, revisions in the tax code and any other changes is a critical component of having a plan, and your attorney can help maintain a routine every couple of years so you do not miss a regular update.
An estate plan is not a “set it and forget it” document. Life changes, and you evolve, which will require necessary updates to your estate plan. Doing so will give you peace of mind and ensure you protect your assets and your family.