If you have already written an estate plan, you are ahead of the game. Most people have not. Simply by virtue of having an estate plan in place, you are more prepared than average.
However, there is the risk of creating an estate plan and then neglecting it. Some people essentially forget about their plans, assuming that everything is taken care of.
But the reality is that you need to review your estate plan, as updates may sometimes be necessary. There are two ways to address this so that you know when it’s time to make those critical updates.
1. Creating a schedule
The first tactic that people use is to create a review schedule. After you file your estate plan, for instance, you decide that you will come back every 12 months and look over the plan. This gives you a chance to consider what updates you may want to make. Even if you pass away unexpectedly, you know your plan has been reviewed within the last year. It’s impossible for it to be drastically out of date, and having a set schedule helps you remember to make these changes.
2. Using life events
The second tactic is simply to use life events, viewing them as triggering events that mean an update is necessary. Examples of potential life events include:
- The birth of a child
- The birth of a grandchild
- Getting married
- Getting divorced
- The death of a beneficiary
- A serious medical diagnosis
- A significant change to your assets
Rather than having a set schedule, you just review your plan when there are major changes in your life, and you try to make updates that match.
Both of these tactics can work. Just be sure you know what will be best for your family and what legal steps you’ll need to take.
