If you’re worried that your estate plan may become outdated before you actually pass away, one tactic you can use is to carry out annual reviews. You can simply set up a schedule and go back over the documentation. If you think annual reviews are too frequent, you could review the plan every other year.
Another tactic to consider, though, is to identify key times when a review may be wise. You’re not operating on a set schedule, but just thinking about when changes may be needed. Here are three examples.
1. Changes to your marital status
First of all, if you get married or if you get divorced, then your estate plan may need some alterations. You may need to remove your former spouse or add your new spouse to the plan. This can change how you allocate assets, who can make medical decisions for you and much more.
2. Changes to your family
You also want to consider your extended family or anyone who may be a beneficiary of your estate plan. If a beneficiary passes away, then you need to update the documents. If a new grandchild is born, you may want to leave them an inheritance.
3. Changes to your health
Finally, estate planning can allow you to address medical decisions, often by using an advance directive like a living will or a medical power of attorney. So if you’re diagnosed with a serious disease or disability, it may be time to look at your plan and see what types of decisions you want to make. If you haven’t addressed your medical concerns at all, that would be a good time to do so.
When done correctly, estate planning can be very helpful, so just make sure you know what legal steps to take.
