It is often wise to update your estate plan. Part of the reason for this is that you need to make an estate plan well in advance. Putting it off—such as waiting to make an estate plan after you retire—-is risky because you can never really predict the future.
But how do you make those updates? There are two tactics that you can use, which are sometimes combined. Let’s take a look at how they work so that you can see when and how to make these updates.
Picking a set timeline
First of all, when you originally draft your estate plan, you can just pick a timeline for your updates. Maybe you will come in once a year to review your plan, or maybe you want to make updates every two years. Setting up a schedule in advance can be helpful. It is still possible for your estate plan to be somewhat outdated when you pass away, but it will not be as significant as someone who makes an estate plan and then does not touch it again for 20 years.
Looking for key life events
The other tactic is to just address your estate plan whenever it is necessary based on events in your life, rather than setting up a schedule. Examples of these events could include getting married, getting divorced, being diagnosed with a serious illness, having a child, acquiring significant assets and things of this nature. You also need to consider your extended family, looking at things like the death of a beneficiary, the birth of a grandchild, or adult children who get married and have their own spouses.
Either way, the most important thing to do is to remember that your estate plan needs these updates so that it will be accurate. Be sure you know what legal steps to take.
