Imagine the stress and confusion if your will, trust or other estate plans no longer reflect your current financial situation or family dynamics. It can leave your loved ones in a difficult situation as they try to navigate outdated or impractical instructions, potentially leading to disputes and delays when carrying out your final wishes.
It underscores the need to regularly update your estate plans and ensure they align with your current circumstances. However, it raises the question: How often should you revisit them?
Life changes that warrant an update
While there’s no strict schedule for reviewing your estate plans, it’s recommended to revisit them every few years to ensure they stay current. However, certain life events may require more immediate action. They include:
- Marriage or divorce
- Birth or adoption of a child
- Significant changes in your financial situation
- A decline in your health, physical or mental abilities
- Death of a beneficiary
- Changes in tax laws that impact your estate plans, among others
The goal is to accommodate these and other life changes into your estate plans and ensure there are no gaps that would complicate things.
Do not leave anything out
There is more to revising your estate plans than updating what you own and who gets what. Equally essential is looking at the individuals with authority to act on your behalf and assessing their capability or suitability for performing their duties. These include your designated powers of attorney, appointed guardians, executors and trustees.
It’s also in your best interests to communicate your current estate plans with loved ones and explain your decisions to avoid misunderstandings or disputes. Most importantly, consider seeking qualified assistance to ensure your estate plans are comprehensive, legally compliant and enforceable.