One of the best ways to plan for your family’s future after you pass away is to draft an estate plan. This provides guidance and instructions, telling your family what you would’ve wanted. It can address things like medical care, end-of-life care, the division of financial assets, the handling of family heirlooms and much more.
Many people don’t have an estate plan, so simply writing a will is a positive first step. However, it’s risky to assume that an estate plan will apply forever. In many cases, it needs to be updated periodically to ensure it still reflects your wishes and addresses everything important to your family.
When should you make these updates?
One tactic for keeping your estate plan current is to carry out periodic reviews. For instance, some people review their plan biannually to see if any updates are needed. Some reviews may not result in changes, but others could. For example, there may have been significant changes to the law, to your family dynamics or to the value of your estate.
Another option is to review your plan during significant life events. Examples include:
- Marriage or divorce
- The birth of a child
- The sale of major assets
- A serious medical diagnosis
- The death of a beneficiary
Essentially, you should consider how these changes in your life may alter your estate plan and make updates promptly. This ensures that, if you pass away unexpectedly, your estate plan will still address everything appropriately.
No matter which approach you choose, be sure you understand all your legal options while creating and updating your estate plan.
