When is it Time for an Estate Plan Review?

So you’ve done the hardest part – you’ve organized your finances, sat down with an attorney, and created your estate plan and living will. You can sit back now and relax knowing that your family will be taken care of in the event that anything should happen to you. However, while it’s true that having your estate plan done is a very important first step, it doesn’t mean that you never have to think about it again. Life is never static, constantly changing, and as your life shifts, you might need to look back at your estate plan and make some changes to better fit your new situation. Here are some life events that should prompt an estate plan review. 

Change in marital status

If you get married or divorced, it’s pretty urgent that you return to your estate plan as quickly as possible and adjust your beneficiaries. You would certainly want your new spouse to be taken care of in the event that you’re gone, or you wouldn’t want your ex to be inheriting all your assets, especially if things ended on bad terms.

Death of a beneficiary

You could have named any number of people as beneficiaries in your estate plan, from your children, to grandchildren, to spouse, to siblings. If any of the named people in will are no longer around to collect after you’re gone, those assets could end up in the hands of the government. Make sure that your money and property ends up with the people you want to have it and not stripped away in legal proceedings. 

Birth of a new dependent

There is no doubt that you will want your children to be taken care of when you pass away. So, as soon as your new bundle of joy enters the world, it’s a good time to look back at your estate plan and make sure that they are factored in. Ensure that there is someone designated to care for them in your absence and that the funds for their care are provided. Or designate the child themselves as a beneficiary with trusts and accounts that can hold money for them until they come of age.

A significant change in your financial situation

If you suddenly come into a lot of money, or even not so suddenly, you will definitely want to take a moment to review your estate plan with your attorney. Changes in the amount of money being left behind could result in different tax requirements, trust creation, or other such intricate and complicated elements that need to be addressed. Once again, if you don’t have the proper setup for your assets, they could end up in the hands of the government.

Time

Time changes all things – friendships, love, money, property, relationships – there’s a chance that it could all be different five years from now. Every few years, have a chat with your estate planning attorney to determine if your situation has changed a considerable amount to merit a review of the plan. Removing or adding people to your estate plan can make a rather large difference in the end so make sure that everything is set up the way you want it. Even if you decide to leave everything as-is, an occasional review with your attorney will help make sure that your wishes fulfilled.