There are certain changes that estate planners may wish to make to their estate plan and certain times to make those changes that estate planners should be familiar with. As life changes, so should the estate planner’s estate plan. Knowing when to update an estate plan can help the estate planner keep theirs up-to-date.
When the estate planner moves
When the estate planner completes a major move, and moves out of state, they should revisit their estate plan and ensure it complies with the laws in the new state where the estate planner is living. Estate planning laws, including those related to wills, can vary by state so the estate planner should ensure their estate plan is current and compliant with the laws in their new state.
When the estate planner’s relationships change
When the estate planner’s relationships change, they should update their estate plan to reflect those changes. Relationship changes that may impact an estate plan include marriage, divorce, birth or death. If the estate planner welcomes a new baby, marries a new partner or suffers a divorce or death, their estate plan should be updated to account for those changes.
When the estate planner’s assets or liabilities change
If the estate planner’s assets or liabilities change, it will likely impact their estate plan. An estate plan is used to distribute assets to the estate planner’s beneficiaries so it should be kept current with any shift in the estate planner’s assets or liabilities.
Designations in the estate plan are outdated
If designations including an executor, trustee, or guardian becomes inappropriate, the estate planner should update those designations. They should also keep all retirement account and life insurance designations current.
Estate planning is an important way to plan for the future. In order to do that, estate planners should understand the importance of keeping an estate plan current and regularly updating it.