After writing an estate plan, many people think that the job is done. However, estate plan maintenance and management continues from the moment an estate plan gets created, to the moment of its creator’s death and even beyond.
An important part of this process is to review the estate plan. But how does a person know when to do so?
Frequent reviews without changes
Forbes discusses when to update an estate plan. Generally speaking, many experts agree that people should at least look over their plan once every three to five years. Even if nothing major changes in a person’s life, it is likely that small things have altered which may impact the estate plan as a whole. It is a good refresher, too.
Outside of that, major life changes should usually bring about the review of an estate plan. This can include changes to beneficiaries, changes in a person’s assets, and changes in their location.
Main changes that prompt review
Beneficiary changes will include anything from marriage, divorce or the birth or adoption of a child, to the estrangement or death of a relative. Asset changes will include major losses or gains to finances, property or other assets.
Location change involves relocating to a different state. Each state has its own way of handling estate planning, and it is possible for the estate plan of one state to not hold validity in another. It is always best to check the laws of a new state, or even a new city or county, just to make sure an estate plan still holds viability.
In keeping up with estate plan updates, it ensures that the estate plan reflects a person’s wishes accurately to the very end of their life.