Why It Is Important to Update Your Estate PLan

Estate planning is the process of arranging your assets, properties, and other valuable things so that they can be distributed to your loved ones after you pass away. While estate planning is an important aspect of financial management, it is not a one-and-done process. Regular review and updates of your estate plan are crucial to ensure that it is up-to-date with your changing circumstances, and that it meets your goals and wishes.

In this blog post, we'll take a closer look at why it's essential to review and update your estate plan regularly, and how often you should do it.

Why is it important to review and update your estate plan?

Your estate plan is a legal document that outlines how your assets will be distributed after you pass away. However, life is unpredictable, and things can change quickly. You may experience significant changes in your financial situation, health, family circumstances, or your personal goals and wishes. Therefore, it's crucial to keep your estate plan current and up-to-date.

If you don't update your estate plan regularly, it may lead to unintended consequences. For example, if you named someone as a beneficiary in your will or trust, and they pass away before you do, it may create a situation where your assets end up in the wrong hands. Similarly, if you get divorced or remarried, it can affect how your assets are distributed, and who will have legal authority over your health care and financial decisions.

How often should you review and update your estate plan?

There is no one-size-fits-all answer to this question, as the frequency of review and updates of your estate plan will depend on your individual circumstances. However, as a general rule, it's recommended that you review and update your estate plan every three to five years or whenever there is a significant change in your life circumstances.

Here are some events that may trigger a need to update your estate plan:

Changes in family circumstances: If you get married, divorced, have a child, or experience the death of a loved one, it's crucial to update your estate plan to reflect the changes in your family circumstances.

Changes in financial circumstances: If you experience a significant change in your financial situation, such as receiving an inheritance, selling or buying a property, or starting a new business, you may need to update your estate plan to ensure that your assets are distributed according to your wishes.

Changes in your health: If you become seriously ill or disabled, it's essential to update your estate plan to ensure that your health care decisions are in line with your wishes.

Changes in the law: Estate planning laws and regulations are subject to change, and it's important to review your estate plan regularly to ensure that it's in compliance with the latest laws and regulations.

In summary, reviewing and updating your estate plan regularly is an essential part of financial management. By keeping your estate plan current and up-to-date, you can ensure that your assets are distributed according to your wishes, and that your loved ones are taken care of after you pass away. Remember to consult with a qualified estate planning attorney to help you review and update your estate plan to ensure that it meets your individual needs and circumstances.