An estate plan is a legal document that allows you to control how your assets are managed after you pass away. If you have an estate plan, you are one step ahead of the nearly two-thirds of Americans who do not have a will, trust or other crucial legal documents. However, estate planning does not stop once you have signed all of your documents.
Estate planning is a life-long process, and it is often necessary to make regular revisions to your estate plan. Here is how to know if it is time to update your estate plan:
When was the last time you made any changes?
The first thing you should do before making changes to your will or trust is to consider when you made your estate plan. It is often suggested that an estate plan should be revised every three to five years. Your main priority is likely adding new assets to your will and adjusting tax considerations.
Have you had any major life changes?
You do not have to wait that long to alter your estate plan. You may want to make some changes to your legal documents when there is a major life event. You may want to consider the following:
- Your legal status has changed, and you want to add or remove a spouse as a beneficiary or power of attorney.
- You recently had or adopted a child and want to make a trust for their future or assign a child guardian.
- You recently were diagnosed with a serious medical condition and need to change your power of attorney or living will.
- You have a large estate and want to make a trust so your legacy is used wisely.
- A beneficiary, guardian or executor passes away, and you need to make changes.
If you are not sure if now is the right time to revise your estate plan, you may need to reach out for professional legal guidance and consider your options.