Knowing when to update an estate plan is an important part of the estate planning process. Estate planners should keep in mind to regularly review their estate plan, however, they should also be familiar with certain situations, circumstances and times when they should update their estate plan to ensure it is current with their wishes.
The estate planner relocates
Estate planning laws vary by state which is why estate planners should ensure their estate plan is compliant with the laws in their new state after they move. Important differences can include what is required for a will to be valid.
The estate planner’s relationships change
If the estate planner’s relationships change, it is likely they will need to update their estate plan to include those changed relationships. Relationship changes that should be considered can include a marriage, birth, death or divorce.
The estate planner’s assets and liabilities change
If the estate planner’s assets or liabilities change, the estate plan should be updated to include those changes. One of the primary purposes of the estate plan is to dispose of the estate planner’s assets which is why changes to liabilities or assets should prompt a review of the estate plan.
The designations in the estate plan are out-of-date
If the designations in the estate plan, such as the executor, trustee or guardian, are no longer appropriate, the estate planner should consider revisiting their estate plan to update them.
Estate planning can seem complex but it does not have to be if the estate planner knows what to include in their estate plan and when to update their estate plan. Estate planning can be beneficial for both the estate planner and their family which is why estate planners should know how to keep their estate plans current.