Creating an estate plan is one of the most important things you can do. After all, you want to protect your hard work—your assets, your family, and ultimately your legacy. Reviewing it after significant life changes ensures that your wishes are always transparent.
An estate plan is not a set of documents you create once and set aside until the end of your life. It should accompany you throughout your life, be with you through the highs and lows and reflect your life’s history.
Life changes
One of the most common reasons to update your estate plan is when there is a significant change in your life. For example, a marriage, a divorce, the birth of a child or the death of a loved one. These are critical life changes that could impact your estate plan directly.
Legal changes
Just like a person’s life, the law changes throughout time. This means that you must ensure your estate plan complies with current rules and regulations to ensure a smooth transfer of assets to your beneficiaries after your passing.
Financial ups and downs
Most people experience changes in their financial situations during their lives. For example, they may purchase or sell a significant asset, receive an inheritance or experience a substantial increase or decrease in their income. These are good reasons to work with your attorney to update your estate plan.
Communicating with family
Updating your estate plan lets you speak with your family about any changes you have made and explain why. This ensures they understand your decisions and avoid potential problems should you pass away unexpectedly.
Keeping your estate plan up-to-date is essential to life, much like filing taxes. While you may not need to do it every year, you should consider reviewing your estate plan any time you experience a significant change in your life, and if you do not experience any substantial changes, every three to five years to ensure everything remains compliant with state laws.
