Creating an estate plan is an important thing to do. However, the simple creation of the plan is not where things end.
For the best results, it is important for people to update their estate plans somewhat frequently. But how does a person know when to do that?
Reviewing your plan regularly
Forbes discusses the reasons it is time to update an estate plan. In some cases, enough time may have elapsed since the last review that it is simply time to take another look.
Over the years, many things change. A person may not even have full awareness of every change, or remember it all. This is why reviewing can help, as it refreshes a person’s memory and allows them to make those changes.
Though opinions vary, many experts suggest a person review their estate plan once every two to four years.
Making changes to reflect life changes
Of course, when life changes happen, it is important to take a look at an estate plan and make the appropriate changes then and there. There is no need to wait until years pass to do a regular review when knowing a change is happening.
What changes should a person immediately make edits in their estate plan for? Any change that involves beneficiaries, finances and assets, or the location of the individual to whom the estate plan belongs.
Matters of beneficiaries can include marriages, divorces, births, adoptions, deaths, estrangements and more. Asset changes typically just focus on sudden asset gains or losses, or the transfer of one asset type to another. Finally, each state has its own estate planning laws, so if someone moves, they must ensure their estate plan still works.