If you have an estate plan, it is excellent that you have taken steps to give your family guidance when it comes to distributing your assets, determining what type of medical care you need and things of this nature. Drafting a plan well in advance can help to avoid estate disputes and conflicts between family members, especially during an emotional time.
However, it is also important to update your estate plan periodically, or it could be very outdated by the time your family actually needs to use it. Some people find that the best way to address this is by setting up a schedule to review the estate plan, such as doing it every two years. You may not need to make updates every single time, but you at least want to go over the documentation and see if it still truly reflects your wishes.
When to make major updates
But outside of reviewing your documentation periodically, you also want to look for significant life events that may change the way that you craft your plan. When these events occur, it may be wise to update beneficiary designations, living wills, trusts, powers of attorney and the like. Examples include:
- Being diagnosed with a serious disease
- Getting married or getting divorced
- Having a child or the birth of a grandchild
- Suffering a significant injury
- Selling or acquiring major assets
- Learning about changes to local estate planning laws
- Changes to your family structure, such as one of your children getting married or divorced
- The death of someone named in your estate plan, whether they are a beneficiary, a medical agent, or an estate executor
If you are proactive about updating your estate plan, you can be sure that it will work for your family when it is needed. Make sure you understand what legal steps to take to accomplish your goals.
