When should you review your estate plan?

One estate planning mistake that people sometimes make is that they assume that the job is done once the estate plan has been drafted. They file the documents and then forget about it, perhaps for years or even decades.

But the problem with this is that the estate plan could become outdated in the future. What you decided 10 years ago may not be relevant now. As such, it’s best to periodically review the plan. Some people will just choose a set schedule, like reviewing it every two years. But you can also look for specific life events that mean a review is needed.

Key events to watch for

Every situation is unique, so don’t hesitate to review your plan whenever there’s a major change in your life. Some examples of these potential changes include:

• Major career changes that impact your income 
• A serious medical diagnosis or change to your health 
• The death of someone who is listed in the estate plan, such as a spouse, an adult child, or another beneficiary 
• The purchase of a major asset like a business or a home 
• The sale of these same major assets, which can significantly alter the estate 
• The birth of a new beneficiary, such as additional children or grandchildren. 
• Changes to your marital status, such as getting married, divorced or remarried.

You may not have to make updates after all of these changes, but they are big enough life events that they warrant a review. This way, you ensure that your estate plan is always properly updated for your family. You just need to make sure you know what legal steps to take along the way.