Once you create an estate plan, it’s easy to assume that you can keep it the same for the rest of your life.
While you hope this happens, there is no way of knowing for sure what the future will bring. You must realize that changes to your estate plan are necessary every now and again. If the time comes, don’t hesitate to take immediate action, just as you did when creating your estate plan in the first place.
Reasons to update your estate plan
There are many reasons to consider an update to your estate plan, including but not limited to the following:
- The person you named as beneficiary is no longer living
- You have gone through a divorce
- You have recently tied the knot
- You need to name someone else in your will or trust, such as a new child
- To change guardians, trustees or personal representatives
- A child has reached the age of 18
- A recent decrease or increase in the value of your estate
- To do away with a will and create a trust
- The recent acquisition of a valuable asset, such as through an inheritance or lottery payout
Along with the above, there is one last time when it makes sense to update your estate plan: after a few years have passed.
The passage of time is one of the best reasons to review your estate plan for potential updates. If you get into the habit of reviewing your plan at least once a year or every other year, you’ll never have to worry about going too long without the right details in place.
It goes without saying that creating an estate plan in the first place is a big step. It may not be something you want to do, but once it’s complete you feel better about the future.
Just the same, you may not be excited about altering your estate plan over the years. But once again, you need to do so in order to protect you, your family and your assets.
Now that you know when to update your estate plan, you can take action as necessary to give you the peace of mind you deserve.