If you have an estate plan already, or if you are thinking about making one in the near future, that is certainly a good thing and an important step to take. Far too many people simply never write a will or make an estate plan at all.
However, depending on your age, you may be worried that your estate plan is quickly going to become outdated. The decisions you make as a young parent may no longer apply once your children move out of the house, for example. The assets you include in your will when you’re in your 30s could be much different than the assets that you include when you’re in your 60s. So, when should you update your plan?
Identifying these key changes
There are two common tactics, the first of which is just to conduct an estate plan review periodically. For instance, you could review your plan every two years, making changes whenever you feel they are necessary. But you can also look for important life events that may impact your plan, such as:
- Being diagnosed with an illness or disease
- The passing of one of your beneficiaries
- The birth of a child or a grandchild
- Selling or acquiring major assets, such as homes or businesses
- Inheriting wealth from your own parents
- The passing of someone you previously named as a beneficiary
- Changes to your romantic life, such as marriage or divorce
By focusing on these key events, you don’t necessarily have to create a review schedule. But with the right mindset, you make updates to your estate plan when they’re necessary so that you know that plan will be ready when your family needs it. Just be sure you know what legal steps to take to accomplish these goals.