There’s nothing like the feeling you get when you finally create a comprehensive estate plan. Even though it forced you to think about the future, you’re now in better position to protect both you and your loved ones (as well as your assets).
However, there’s a big mistake lurking: neglecting to review your estate plan as time goes by.
It may not be something you enjoy, but there are times when you have to review and modify your estate plan. Consider the following:
- The passage of time: As the years go by, there’s a greater chance that your estate plan will no longer suit your needs. Review it every year for potential changes. It’s your hope that everything can remain the same, but you never know when you’ll have to tweak it.
- Divorce or marriage: When your marital status changes, so should your estate plan. For example, if you divorce your spouse, you probably want to remove them from your estate plan, as you don’t want them to receive anything in the event of your death.
- Having a child or adoption: If you bring a new child into your life, don’t wait to review and modify your estate plan as necessary. The most important thing you can do is name a guardian for your child. This is the person who will raise them if you and your spouse pass on before they reach the age of 18.
- The death of a loved one: This doesn’t always call for a review of your estate plan, but it may make you realize how important it is to ensure that everything is in place. Also, if the loved one held a place in your will, such as the beneficiary of your assets, you’ll need to adjust this accordingly.
These are some of the best times to review and modify your estate plan, but there may be other situations that call for you to take action.
If you find that you need to make a change, don’t delay in doing so. This will once again give you the peace of mind you’re looking for.