An estate plan can protect your assets from fraud and allow you to plan for your future with confidence. It can provide your surviving family members with comfort, as well as guidance regarding your final wishes after your death.
Keeping your estate plan updated throughout your life will preserve its function so everything remains in compliance with your intentions. Knowing under what circumstances to review your plan can help you avoid costly and disappointing errors.
The exciting parts of life can sometimes bring the most changes. Events including marriage, births of children and an unexpected increase in assets may alter your estate plan. Equally as impactful include events like death, divorce and changing dynamics in once-important relationships. Other conditions that may require you to update your estate plan include adoption, your children entering adulthood or a remarriage.
When significant events take place, updating your estate plan may not feel like a priority. However, neglecting to make necessary changes can cause disappointing consequences. For example, U.S. News reminds people that failing to update an estate plan after divorce may mean your inheritance rightfully remains with your ex-spouse even if you get remarried.
There are also a number of external factors that may impact your estate plan. For example, if you move to another state, different laws may apply that change aspects of your plan. Changes to tax laws are another common reason to need to review your estate plan.
Reviewing your plan periodically can help you identify areas where you can fortify and improve its function. Anytime you make a notable change, you may benefit from informing the people who play a critical role in the execution of your plan.