An estate plan should be updated periodically. Some people do this just by determining the frequency of those updates. They decide they want to update the plan every three to five years, for instance.
But this can sometimes be problematic because there are certain life events that occur after which an estate plan needs to be changed. Instead of (or in addition to) sticking to a schedule, which creates the risk of an outdated estate plan, people may want to adjust their plan after these life events take place.
Marital changes
One example of a life event that requires an update is any sort of marital change. This could include getting married for the first time, getting divorced or getting remarried.
Health changes
If there are any major changes to someone’s health, an estate plan may also need to be updated. They may want to use a medical power of attorney, for instance, so that someone else can help make their medical decisions.
Family changes
Additionally, estate planning often encompasses far more than just direct heirs, such as children. It may also include spouses, grandchildren and other extended family members. Any time this family dynamic shifts, an estate plan may need to be changed.
Legal changes
Finally, there are sometimes legal changes that create new estate planning tools or that make old ones irrelevant. If the law changes, it’s important to ensure that the estate plan still matches.
As you can see, there are a lot of things to consider with estate planning. Be sure you are always aware of your legal options and what steps you need to take.
