Having a solid estate plan is very important, but it is just as important to review your estate plan regularly to make sure that it meets your current wishes.
In addition to reviewing your plan every three to five years, you should also review and update your plan after certain life events.
As your family grows and changes
As your family grows, revisit your estate plan to add beneficiaries after births or adoptions. When beneficiaries pass away before you, remove them from your plan and reallocate the assets intended for them as needed. Additionally, if guardianship for minor children is part of your estate plan, as those children become adults update your plan to dissolve the guardianship and include the new adults as direct beneficiaries.
A significant change to your assets
Whenever there is a significant change to your assets, you should review your estate plan. Whether it is an increase in assets or a decrease in assets, update your estate plan to reflect your current circumstances so that your assets pass on as you wish.
To change the executor, trustee or guardian
There are a number of roles that you designate to certain people in an estate plan. These include the estate executor or trustee, a guardian for your minor children, a medical power of attorney and a power of attorney. If one of these people passes away before you, or you change your mind about who should fill the roles, update your estate plan to choose a new person.
These are only a few examples of when to update your estate plan. Reviewing and updating your plan regularly and after any significant life event will give you the peace of mind that your estate will pass on according to your wishes.
