You finally finished your estate plan. It was a hefty task but you got through it. Unfortunately though, your estate plan is never quite finished. Estate plans should be updated and reviewed periodically.
Your estate plan should accurately reflect your life and wishes and sometimes life events can change elements of your plan. What circumstances should prompt a change or review to your estate plan and how often should you update it?
Changing your estate plan
You should review your estate plan every few years. Tax laws change relatively frequently and it is a good idea to make sure your estate plan is aligned with all rules and regulations by checking your plan every two or so years. There are also a few life events that should prompt you to look at and possibly update your estate plan. Events like:
- Birth of a new child
- Death in the family
- Marriage or divorce
- Large inheritance
- Acquiring real estate or other assets
- Starting a new business or other venture
It is important that your estate plan is up-to-date. For example, if you have a child, you will most likely want to make sure this new addition to your family is accounted for in your estate plan, such as in your will or a trust.
Estate planning can be complicated and it is important that you make sure your plan is through and precise. You do not want your careful planning to go to waste just because you forgot to change your plan after a major life event.