Creating an estate plan feels like a lot of hard work, time and effort when you first get started. Make no mistake, though: this is a lengthy process with no true “end”. Though you can get the bulk of the work done and out of the way early, it is not a simple set-and-forget matter.
After some time goes by, you should take a look at your estate plan again and set it up for review.
Changes to your beneficiaries
Forbes examines certain parts of your estate plan that you should review sooner rather than later. This includes the parts of your estate plan that are often under constant changes in the first place. For example, take a look at your will. Chances are, when you first wrote your will, you mentioned the people you want receiving assets from your estate. But how many of those people do you still want in your will today? Have you lost any relatives since the initial will? Have you gone through a divorce?
Needless to say, you want all relationship changes reflected in your estate plan as soon as possible. This also includes matters not related to your will, such as your insurance policies. You do not want an ex-spouse still set to receive money in the event of your death, after all.
On the matter of assets
Next, keep matters related to your assets up to date. Your assets often have a level of fluidity, changing often throughout the years. But any time you face significant loss (such as bankruptcy) or significant gain (such as inheritance), you should review and revise your plan.
Experts state you should review your plan once every three years even without any major changes. However, there are no strict rules for when or how often you should review, so you can take it at your own pace.