Adults create an estate plan so their loved ones have instructions about how to handle their final affairs. Some adults assume this is a one-and-done event, but it’s critical that they realize that all estate plans must be updated periodically.
Estate plans must be reviewed at least once every three to five years. If there are major changes to the person’s life or specific other circumstances, the estate plan will need to be updated before the five-year period is over.
What life changes necessitate an update to the estate plan?
Events like getting married, having children, adopting children or having grandchildren mean you need to check your estate plan. The same is true if one of your children turns 18 or if you go through a divorce.
Changes in assets also means you need to look at the estate plan so you can update it. This is necessary if you buy, sell, inherit or give away things. The only assets included in your estate plan should be the ones you currently own. If assets named in the estate plan aren’t still owned, the estate may have to get them to satisfy the inheritance for beneficiaries.
Reviewing and updating the estate plan is also necessary if anyone named passes away or becomes incapacitated. This includes looking at the beneficiaries, estate administrator or people given power of attorney designations.
It’s also necessary to update your estate plan if there are changes in estate planning or tax laws. Having someone on your side who can assist you with ensuring your will is up to date can be beneficial.