Creating an estate plan is a responsible step to take to plan for your loved ones’ futures. However, you may not realize that once you create an estate plan, it’s not a “one and done” situation. It requires regular reviews and updates to keep it current and accurate.
It’s smart to review your estate plan every three to five years at least. However, if there’s a change to your situation, it may be necessary to review it more often than this. Learn more about common mistakes that can be detrimental to your estate plan here to avoid them.
Having the wrong trustee or executor listed
Trustees and executors need to be named with plenty of thought and consideration. They have the legal duty to do what is best for the beneficiaries. They have a lot of control over what happens to your assets after you pass. If you divorce or have another change in your life, it may be necessary to reconsider who you have named to these roles.
Considerations for grown children
When your children are minors, your estate plan is used to name a guardian for them in case something happens to you. However, once they are grown, you need to remove this clause, as it no longer applies to your situation. You may also want to create a trust that will distribute your assets to your children when they reach a certain age.
Ensuring your estate plan is up to date and accurate
Estate plans can be complicated but ensuring that you keep them accurate is a must to ensure that your assets are distributed based on your wishes after your death. Also, keeping the plan updated will ensure it remains legally binding after you pass away.