Don’t neglect your estate plan after you write it. You should at least review it periodically to see if you need to make any changes. Some people will establish a biannual review schedule, for example.
At the same time, though, it’s important to recognize that major life changes could also trigger an update to that plan. When you experience these events, it may be a sign that you need to at least conduct a review. This will give you some idea of how your estate plan may need to be altered to respond to your new circumstances.
Common examples
The exact reasons why people need to update their estate plan will vary from case to case, but here are a few notable examples to keep in mind:
- You open, close or sell a business
- Someone you’ve already named in your estate plan, perhaps as a trustee or an executor, passes away before you do
- A beneficiary passes away
- New beneficiaries are born, such as children or grandchildren
- Some of your family members get married, potentially changing the dynamics
- You personally get married or divorced
- You are diagnosed with a serious illness, a disability or another type of medical condition
- You identify specific needs in a beneficiary, such as setting up a trust for someone with special needs
- You receive a large gift or an inheritance from your extended family
- Your spouse becomes ill or disabled
- There are major changes to estate planning laws, tax laws or similar regulations
The key is to remember that writing a will isn’t necessarily enough to secure your future for your family. It is a good first step, but it may be necessary to review and update that will periodically. Be sure you understand all the legal steps to take at this time.