It is important to remember to update your estate plan. Drafting one is a crucial first step. But if you then forget about it or neglect it, it could be very outdated when your family finally puts it to use.
There are a few different ways that you can address updating or reviewing that plan. Below are two of the most common.
Annual reviews
First and foremost, you could simply conduct an annual review of the plan. Some people also do this biannually, or every three years. Either way, the key is to set up a schedule so that you do not forget.
When you conduct the review, you essentially just look for any major changes in your life that could indicate you need to alter the estate plan. Maybe you look back over the last 24 months and see that one of your adult children got married, one of your grandchildren was born and you inherited wealth from your own parents that now needs to be added into your estate plan.
Addressing life events
The second process does not rely on a set schedule, but you just make updates when they are necessary based on major life events. Examples include:
- Marriage
- Divorce
- Childbirth
- A medical diagnosis
- Major changes to income
- Selling major assets
- The death of a beneficiary
Instead of waiting for a specific date to conduct an annual review, you just make the updates to your estate plan whenever they are necessary.
Which option is right for you?
Both of these tactics can work well to update your estate plan. Which one works best for you likely depends on your personal preferences and details about you and your family’s life. But either way, just make sure that you understand what legal steps to take when drafting your estate plan or making updates in the future.
