Most people make an estate plan with the intention of never having to look at it again, but that’s not what thought should be present. Instead, anyone creating an estate plan should prepare to review it periodically.
As a general rule, estate plans should be reviewed at least once every five years. They should also review the estate plan if there are major life changes that may shift the terms of the estate plan.
What major life changes require an estate plan review?
Major changes in your family, such as you having a new baby, adopting a child or your child turning 18 years old, necessitate an estate plan review. You may also need to take a look at everything if you have grandchildren, get married or go through a divorce.
You’ll need to adjust things in the estate plan if anyone named in it passes away or becomes incapacitated. Even if you recognize that someone can no longer handle the duties that they were assigned, you’ll have to change the plan. These individuals don’t have to be your beneficiaries. Instead, they can be the estate administrator or someone designated as your power of attorney.
Changes in tax or estate planning laws can also mean you need to take a look at the plan and make adjustments. Because changing your estate plan must be done precisely, it’s best if you work with someone familiar with these matters. They can assist you in ensuring that everything in the update is handled in a way that can be legally enforced.