Millions of Americans have yet to sit down and create a thorough estate plan. If you are not among this group, then you are ahead of many. Don’t make the mistake, however, of stopping there. Once your estate plan has been created, it should be reviewed and updated every three to five years. In addition, there are a number of precipitating events that trigger the need to update your plan. Included among those events are:
- Marriage/Divorce/Birth – your own marriage or divorce is certainly a reason to update your existing estate plan. The marriage or divorce of a beneficiary may also call for changes to your estate plan. When a new potential heir or beneficiary is born, it is also always a good idea to identify him or her by name in your plan even if the child is included in a general term already.
- Changes in law/residency – if you permanently change your state of residence, you will likely need to make changes to your estate plan to reflect any state specific laws that have changed. Likewise, if the laws in the state where you reside, or federal laws, affect your estate plan, you will need to make any necessary revisions to account for the changes.
- Illness—If you, or your spouse, become seriously ill, you may need to review your estate plan. Changes may need to be made now in the event that one of you is not able to legally make then in the future.
