Planning for what happens to your estate once you are gone is a step in the right direction. However, it should not be a one-off event, and you need to continually update your estate plans in line with the changes in your life.
While it is advisable to revise your estate plans every couple of years, every significant change in your life needs to reflect in your estate plans as soon as it occurs. Below is what you ought to know.
Estate planning is a continuous process
Did you get a divorce or start a new marriage? Has the list of your beneficiaries changed? These are some of the triggers that may induce a revision of your estate plans. If these changes are so drastic, you may need a total overhaul of your whole estate plan – from your will or living trusts to advance health directives you may have given.
Other instances may include:
- A variation in the size of your estate
- Changes in the executors or trustees
- Tax laws changes
- A relocation to a different state, among others
Anything that you think will affect your estate or beneficiaries is reason enough to reexamine your existing estate plans.
The importance of updating your estate plans
The purpose of your estate plan is to ensure a safe passage of everything you own to your beneficiaries as per your wishes. This is exactly why you should have it up to date. You do not want your assets ending up in the wrong hands.
Importantly, it should not be a rushed process. Take your time to go through every detail of your estate plans to ensure no loose ends that will create legal issues once you are gone.