Many adults think of estate plans as set-it-and-forget-it documents, but that’s not the case. An estate plan reflects your wishes when it was made. Over time, those wishes may change. Because of this, it’s critical to review your estate plan at least every five years. In some cases, it may become necessary to review your estate plan faster.
Understanding what should trigger an estate plan review may help you to ensure that your estate plan always reflects your wishes so your loved ones know what to do if you pass away.
Major life events
Major life events are among the most common triggers for an estate plan review. If you get married or divorced, you should take a look at the plan. If you have children or grandchildren, it might become necessary to review the estate plan.
Financial changes
Major changes in your finances are another reason that you should review your estate plan. If you suddenly come into money or have a monetary loss, your estate plan should reflect those. Purchasing or selling any types of assets, such as real estate, are also triggers for reviewing your entire estate plan. Everything that is in your estate plan should be owned by you.
Legal and tax changes
In some cases, changes to estate planning laws or tax laws may mean that your estate plan is largely ineffective. Taking the time to review the estate plan from the standpoint of wealth preservation and ease of transfer to your beneficiaries may be beneficial. Working with someone who knows your situation may make it easier to set up an estate plan that reflects your wishes.