When you make an estate plan, it’s important to consider when to update that plan. One option is to set up the schedule in advance, such as reviewing the plan annually.
Another option, though, is just to look for specific reasons to make these updates, which are often connected to certain changes in your life. If you know what indicators to look for, you’ll always know when to make updates so the plan is current. Here are a few examples of some of the top reasons people choose.
Family issues
First off, there could be changes to your family, such as the birth of a child or a grandchild. You may decide to disinherit one of your beneficiaries, or an adult child may get married or divorced, changing who needs to be included in the estate plan. It’s also a good idea to talk with beneficiaries to find out what they expect, and estate planning updates may be needed afterward.
Health issues
If you have any serious health issues, you may also want to update your plan to reflect them. For instance, maybe you’ve been diagnosed with a long-term condition and you want to set up a medical power of attorney. If you become incapacitated in the future, then you know that your medical agent is authorized to work with the hospital.
Financial issues
Finally, just remember that you are passing assets on to the next generation. If those assets change in any way, your estate plan may need to change so that it matches. An example of this could be selling the family business or inheriting a substantial amount of money from your own parents.
It’s very important to get the details right when doing estate planning. Be sure you know what steps to take.