One of the biggest failures when it comes to estate planning is not that people do not begin to plan, but it is that people do not revisit their estate plan later. When it comes to estate planning, you need your plan to match your life as closely as possible.
Do you know if it is time to update your estate plan? According to Forbes, when you update your estate plan will vary from person to person, but here are some questions to ask yourself.
Did you experience any major life changes?
Life changes are among the most important reasons to take a hard look at your estate plan. If you recently moved out of state, then you will want to revisit. Every state has its own laws regarding estate planning and while some of these laws may not affect the validity of your estate plan, some laws do affect the validity. In addition, if you have recently married or divorced, you will want to alter your plan accordingly.
Have you revisited your estate plan lately?
It is too easy to forget about your estate plan. For instance, if you have a retirement plan, you may not think about it for 10 years or more. By this time, your beneficiary designations may be inaccurate. This is especially true if your account’s value increases. The beneficiary designations control who receives life insurance, annuities, assets and some financial accounts.
In addition to out of date retirement plans, the circumstances regarding your executors or trustees might change over time. The initial people who you entrust with your estate plan may not be the ones that you want later. Are you still close with those in question? Are they still willing to be your executor or trustee?