How often do you need to update your estate plan

On Behalf of | Mar 28, 2024 | Estate Planning |

You understand the value of estate planning. These preparations protect your family and your legacy.

However, like so many other important areas of life, your estate plans need regular maintenance to serve their intended purpose. Consider the times when it is a good idea to review and update your estate plans.

For major life changes

After a major change in your life, you should ensure your estate plans reflect your new circumstances. Marriage, having children or divorce likely means you want to adjust who your beneficiaries are.

Other situations, such as starting a new business or receiving an inheritance, mean you have new assets or responsibilities to care for or entrust to others. Any significant life events that impact your financial situation, beneficiaries and overall life and legacy goals merit a review of your estate plans. This makes it easier for your family to settle these matters without disputes.

When the law or tax code changes

A change to state or national laws could alter what course of action is most beneficial for your estate plans. At such points, it is wise to determine anything that affects the distribution of assets or potential tax liabilities for your family. Try to stay informed on such legal items to make necessary adjustments to your estate plans.

On a regular schedule

It is also good practice to review your estate plans every three to five years to ensure that you have accurately reflected your wishes. Life happens, and you might have unintentionally overlooked a needed change. Schedule these regular reviews of your estate plans for security.

Careful estate planning helps you take care of those you love. By updating your plans on time, you can ensure you fulfill your wishes.