Some people don’t like having to create an estate plan, so they get it all set up and then forget about it. While that might seem like no big deal, it may actually lead to significant issues later.
Anyone who’s created an estate plan must review it every three to five years, even if they don’t have any other life changes that would require a review.
What events necessitate an estate plan review?
Major life changes require reviewing and possibly updating an estate plan. Some examples of these include:
- Getting married or divorced
- Having or adopting children or grandchildren
- Minor children become adults
- Moving to a new state or country
Reviewing and updating the estate plan is also necessary if someone named in it becomes incapacitated or passes away. Remember, to check beneficiary designations, but don’t forget about others like the named estate administrator or someone who’s named as a power of attorney.
Another situation that requires checking the estate plan is selling or purchasing assets. The assets named in the estate plan must match those of the creator. If there are assets in the estate plan that the creator doesn’t have at the time of their death, the estate may have to produce the value of those to the beneficiary.
It’s a good idea to have someone assist with creating an estate to ensure it’s set up in a legally enforceable manner. This can help the beneficiaries to receive what’s intended in the most efficient way.