Updating an estate plan is equally important to developing a well thought out and effective estate plan. Just as estate planning should take into account different aspects of the estate planner’s life, it is also important to take into account any changes in the estate planner’s life when updating an estate plan.
It is typically time to update an estate plan when any significant change happens in the estate planner’s life. This can include a variety of personal or professional circumstances. A general rule of thumb is that it is a good idea to update an estate plan every 3 years to ensure it takes into account any changes in the estate planner’s life that have taken place during that time and that it still reflects the estate planner’s wishes.
In addition, an estate plan should be updated if the estate planner relocates to another state to ensure it complies with all the laws in the new state. An estate plan should also be updated if there is a change in the estate planner’s personal relationships that would impact how they want their property to be distributed. Any changes that need to be made to executors or trustees associated with the estate plan should also be updated. In addition, if the assets and liabilities of the estate planner change, their estate plan should also be updated to reflect those changes. Lastly, different retirement account circumstances should also occasion an update to the estate planner’s estate plan.
Estate planning is an important process for everyone. As such, it is important for estate planners to understand the process and the value of the process and also when to update an estate plan to ensure it is keeping with their current needs and desires for their estate plan. Estate planning can provide important peace of mind for estate planners but only if it done properly and kept up-to-date.