If you have already made an estate plan, then set a reminder for every couple of years to review it. Making sure your estate plan reflects your current reality leaves you and others better prepared if something were to happen to you, such as a serious accident or the inevitable conclusion of life.
Here are three questions to ask yourself each time your calendar notifies you it’s time to review your estate plan.
1. Has my family situation changed?
Let’s say you have been married more than once and are about to tie the knot with someone new. You need to be sure your estate plan has removed all mention of your previous spouse or spouses, as otherwise they might still inherit things or assume roles you assigned them. Having a child or further children will also require an update to ensure they are looked after, with a guardian named and a share of your estate marked out for them.
2. Are the people named in my plan still living?
Sometimes people outlive those they have named in their will. Not only do you need to make sure that your chosen beneficiaries are still living, but you also need to make certain that your executor, trustee and any powers of attorney are also still living (and capable of assuming their assigned roles).
3. Have my assets changed?
It’s unlikely your estate is worth exactly the same as when you made the estate plan. A few thousand more or less may not require any changes to your plan, but more significant changes will. For instance, if your business went bankrupt and the bank foreclosed on your home, then you need to remove those items from your plan, as you no longer have them. Likewise, if you bought a new property and started a new business that is going very nicely, you’ll want to plan for what happens to those assets.
Getting your estate planning reviews correct is important, so consider legal guidance if you have any doubts or need to make alterations.
