Life does not stand still, and neither should your estate plan. If you created one years ago and have not looked at it since, you might want to consider whether it still reflects your current situation.
Below are key moments when reviewing and potentially modifying your estate plan makes sense.
When you experience major life updates
Significant life events often signal it is time to revisit your estate planning documents. Marriage, divorce or the death of a spouse can dramatically change who you want to inherit your assets or make decisions on your behalf. The birth or adoption of children or grandchildren might also prompt you to add new beneficiaries or establish trusts for their benefit.
Career changes matter too. If you have changed jobs, started a business or retired, your financial situation has likely shifted. Part of sound estate planning ensuring that it accounts for new assets, retirement accounts or business interests that were not part of your original plan.
When your financial or legal situation changes
Substantial changes in your wealth, whether you have acquired significant assets or experienced financial setbacks, should trigger a review of your estate plan. You might need to adjust how you distribute your estate or reconsider your tax planning strategies.
Changes in the law can also affect your plan’s effectiveness. Tax laws, probate rules and estate planning regulations evolve. What perfectly worked a decade ago might not be the best approach today.
Do not forget about changes in your relationships with the people you have named in your documents. If an executor, trustee or guardian is no longer willing or able to serve, you may need to designate someone new. Similarly, if your relationship with a beneficiary has changed significantly, you might want to reconsider your distribution plans.
Regular reviews keep your plan current
Reviewing your estate plan every few years is a smart practice. However, it might be beneficial not to wait for a scheduled review if you experience any major life event. Your estate plan should also evolve as your life changes, ensuring it carries out your wishes and protects your loved ones according to your current circumstances and intentions.