Many adults don’t look forward to creating an estate plan, so they may not think about taking the time to update it once it’s done. Unfortunately, failing to update the plan could mean that it no longer reflects your wishes.
Most people should take the time to review their estate plan every three years if they don’t have any events that would require them to update it.
Changes in relationships
Any changes in relationships require you to look at the estate plan. You’ll need to update your estate plan if you get married or divorced or if your relationship with anyone changes. The same is true if you have children, adopt children, or your children turn 18.
Changes in assets
Acquiring or getting rid of assets requires you to make changes to your estate plan. When you acquire new assets, they need to be added to the estate plan so your loved ones know your wishes for them. If you sell or give away assets, they must be removed from your estate plan. If they’re left in the plan, the estate may have to acquire them for your beneficiaries.
Changes in beneficiaries or designees
You may need to change beneficiaries or designees. This is the case if someone passes away, becomes incapacitated or you don’t want them named in the place they’re currently named.
All changes to the estate plan must be handled appropriately to ensure that it’s legally binding. This may be easier if you work with someone who’s familiar with these matters and your situation.