Having an idea of when to review your estate plan is an essential part of its maintenance. Of course, every person’s situation differs. There is no one timeline for updating and reviewing that works for everyone.
But you can still follow a rough guideline. There are pivotal moments where it is more important to review your plan, after all.
Paying attention to major life changes
Forbes discusses the necessity of updating your estate plan. They also discuss these pivotal moments that almost everyone will come across eventually. Pivotal moments involve big life changes that will drastically affect the way your estate plan works. Some examples include:
- Divorcing or losing a spouse
- Marrying or remarrying
- Birthing or adopting a child
- Going into debt
- Making significant financial gains
- Moving to another area
In any of these situations, what your estate plan says may not continue to reflect reality. Thus, you want to review and update the relevant sections accordingly. After all, an estate plan must reflect your most current life circumstances to fulfill its purpose.
Reviewing outside of life changes
But what happens if you do not go through any major life changes? In that case, experts suggest reviewing your plan every 3 years. You do not need to review the entire thing, nor do you need to make changes. Focus on certain important areas, like your trusts and will. You also want to review your beneficiaries, healthcare proxy and executor.
Ensuring that everything in your estate plan reflects your most recent circumstances helps you out. More importantly, it also makes things easier for your loved ones after your death.
