The Importance of Regularly Updating Your Estate Plan

There are two common estate planning mistakes that can put everything you’ve worked for at risk. The first is failing to create an estate plan at all, and the second is forgetting to periodically review and update your documents.

Reasons to Consider Updating Your Estate Plan

To be effective, estate plans need to be tailored to fit your specific circumstances as well as current federal and state tax laws. Some of the reasons you should consider updating your estate plan include:

• Your income, assets, and liabilities have significantly changed.
• You’ve moved to another state.
• You’ve recently been married.
• You’ve recently been divorced.
• Your family has welcomed a new child or grandchild.
• Your minor children or grandchildren are now legal adults.
• A loved one has become seriously ill or permanently disabled.
• You’ve had a falling out with an heir or someone named as executor or trustee.
• Someone previously named as an heir, executor, or trustee has predeceased you.
• You’ve started a new business.

To account for potential tax law changes, it’s best to have a qualified estate planning attorney review your plan yearly to ensure that it still meets your needs. Generally, experts recommend going no more than three to five years without a plan update—even if your general income and personal circumstances remain the same.