If you have created an estate plan, that is a great first step. Most people have not even done this, so you are ahead of the game.
However, an outdated estate plan may not be as helpful to your family as you assume. For this reason, it is important to update it periodically. But when should you do it? There are two ways to think about it.
Setting up a schedule
Your first option is simply to create a schedule to review your plan. You may decide to do it every year or once every two years. You may not always need to make updates if there have not been major life changes, but reviewing it on a set schedule ensures that it never becomes extremely outdated. At the very least, you will know that you have looked at it recently.
Identifying life changes
Another approach is to update your estate plan any time changes in your life make it necessary. Examples include:
- Receiving a serious medical diagnosis
- Having a child or a grandchild
- The death of a previous beneficiary
- Selling a major asset, such as a family business or a home
- Acquiring significant assets, such as an inheritance
You may also want to review your plan for things like changes to the law or tax implications. Updates can help make your estate plan more effective moving forward.
Making your updates
Regardless of which tactic you choose—or if you want to use both together—the most important thing is to remember that updates are crucial in estate planning. Take the time to carefully consider your legal options.
