For a long time, you did not have an estate plan, and it was a cause for concern. You knew you needed to make one so that if you became seriously injured or ill, your family would know your wishes for end-of-life care and life support. If you passed away unexpectedly, they would know how to divide your assets.
Eventually, you put together a comprehensive plan, spelling out your wishes for things like health care decisions and asset division. You created a will to divide family heirlooms, real estate and major financial assets. You chose beneficiaries and an estate executor. Maybe you even set up trusts with additional beneficiaries and trustees to manage them.
Have you done enough, or will you need to make updates in the future?
When life changes, updates are necessary
It’s wise to make updates as your life evolves. Specifically, you should revisit your estate plan after major life events such as:
- The birth of a grandchild
- The passing of a beneficiary
- Major changes to your financial situation
- Serious health diagnoses
- Shifts in your estate planning goals or financial future
- Getting married or divorced
- Receiving an inheritance
- Buying or selling a business
- Retiring from your career
- Deciding to disinherit someone
Remember, your estate plan may be accurate and thorough when you first create it, but that doesn’t mean it will remain current. It could be years or even decades before your plan is needed, and your circumstances can change significantly in that time.
When they do, it’s important to revisit and revise your documents to reflect those changes. Be sure you understand your legal options and take the proper steps to keep your estate plan current.