One way to review your estate plan is simply to set up a schedule when you create it. Draft the plan, file the documents, and then review them every two or three years to make sure that they still fit with your goals. This gives you a chance to look back on your financial position, family dynamics, changes in assets and much more.
But you may be concerned that the estate plan will still be outdated. What if something significant happens and it’s not time for a review for another two years? As a result, some people will review and potentially update their plans after important life events.
What events should you consider?
Anything substantial may be a good reason to change your state plan, depending on your unique situation. Always consider how changes may impact your family. To get you started, here are a few examples:
- Getting married
- Having a child
- Getting divorced
- Getting remarried
- The birth of a grandchild
- Selling a business
- Selling other major assets, like a home
- Disinheriting a beneficiary
- Being diagnosed with a serious disease
- Moving to another state or country
- Acquiring substantial assets, such as getting an inheritance or winning the lottery
Any time these events happen, it may be wise to change your estate plan. A review is the process of looking at the current plan and considering if it’s time for an update or not. As you work your way through this process, be sure you know about all the legal options you have to create an estate plan that works for your family.