Once you create an estate plan, you’ll feel much better about the state of your affairs. However, don’t assume that you’re set for the rest of your life.
There are times when it’s critical to review your estate plan, as you may need to make some adjustments to ensure that it aligns with your intentions. Here are some significant times when you should review your estate planning documents:
- After a divorce or marriage. If you end your marriage or tie the knot, it’s likely to impact your estate plan. Review it carefully for key changes.
- Someone named in your estate plan has passed on. If one of your heirs predeceases you, you will need to adjust your estate plan accordingly. The same holds true if the executor of your will or your power of attorney dies.
- Passage of new state or federal laws. If any estate planning laws go into effect or are altered, a thorough review is a must. You may need to adjust your plans to accommodate these changes.
- The value of your estate increases. If you received an inheritance yourself, your estate may now be worth much more than it was when you initially drafted your plans. This could change the decisions you make regarding the distribution of your assets.
Even though these specific circumstances typically call for an estate plan review, remember that the passage of time is reason enough to review the finer details of your plan. It’s prudent to at least do a cursory annual review to reflect any new developments that require your attention.