Estate planning can be an uncomfortable process. People find it unpleasant to think about their mortality and how their loved ones may struggle after they die. A large percentage of people never get around to creating estate plans, so those who have wills or other documents are technically ahead of the curve when compared to the average adult.
That being said, drafting documents does not forever absolve people of the obligation to think about the legacy they leave or the support their loved ones might require. Estate plans typically require regular revisions to ensure they remain up-to-date and accurate. Testators who routinely review and modify their estate plans can reduce the likelihood of their family members contesting their testamentary instruments by asserting that they are outdated and inaccurate.
How frequently do people need to go over their existing estate plans and make adjustments based on changes in their circumstances?
Special circumstances require immediate attention
There are a variety of personal changes that make immediate estate planning updates necessary in most cases. The death of a person intended to hold a position of authority or to inherit from the estate is a major change that makes estate planning revisions necessary. Divorce, marriage or even the birth of a new child in the family could also force testators to update their estate plans.
Similarly, the acquisition of new assets or the liquidation of particularly valuable resources, including investments, small businesses and real property, could render an existing estate plan woefully outdated and ineffective. Anyone going through major personal or financial shifts may need to modify their estate planning documents.
Routine reviews are also beneficial
Many changes in circumstances are gradual. They occur over months or years. Family and financial matters can change slowly over time until the situation is vastly different than it was at the time when a testator drafted their documents.
Changes in personal perspective and health can also slowly modify what people require from an estate plan. Therefore, it is generally advisable to review estate planning documents two to three times per decade in the absence of major events. Those who frequently review and adjust their documents can ensure that they provide appropriate support for their loved ones and properly distribute their resources after their passing.
Working with an estate planning professional when drafting documents initially and when conducting periodic reviews can help people ensure they have the right documents in place given their wishes. Frequent estate plan reviews and modifications can provide people with peace of mind and may ultimately result in the most meaningful legacy possible when a person passes.