Even if you have an estate plan, reviewing it is important. A periodic review can tell you if you need to make any updates or changes to that plan.
One way to address this is to review the documents on a predetermined schedule. Many people will review their estate plan every three years, for example. But another option is to look for key events in your life that may mean an update is necessary, no matter how long it has been since the last review.
Marital changes
For instance, did you get married or divorced this year? It may be wise to update your plan. If some of your beneficiaries got married, such as your adult children, you may want to consider their new spouses.
Health changes
Estate planning can also help you focus on future health needs, perhaps using a living will to make decisions in advance or using a power of attorney to choose an agent to make those decisions if you become incapacitated. If you are diagnosed with a significant disease or are facing health challenges, updates are wise.
Financial changes
Of course, you also need to review the plan any time there has been a significant change in your finances or your assets. Say that you were going to leave your home to one of your adult children as your main beneficiary, but now you have decided to sell the house and downsize. The estate plan needs to be updated. Or perhaps you have purchased a new asset, such as a vacation property or a life insurance policy, and you need to determine how that is going to fit into your existing estate plan.
The key is to remember that an estate plan is not something that you just forget about after you originally draft it. As long as you are proactive about making updates, you can ensure that the plan will work for your family. Just be sure you know what legal options you have.