When people begin coordinating an estate plan for their future, they may feel pleasantly comforted knowing that their intentions are preserved and that their family members know exactly what to do after their death. However, a common misstep that people can sometimes make is forgetting to update their plan throughout their life.
Once people finish writing their plan and make it legally official, it is imperative that they revisit what they have written every few years to verify that everything is still applicable. Depending on what has happened in their life since it was written, people may wish to alter, update or even omit certain aspects.
When should people update their plans?
According to Fidelity, there are several reasons why a person may consider changing up their estate plan. These include the following:
- They wish to gift monetary funds to a family member’s education.
- They take on the responsibility of caring for another family member such as an aging parent.
- They get divorced or remarried.
- They see an increase in their assets.
- They experience a death in their family.
- They experience a significant change in their careers such as a big promotion or the sale of a family business.
Why should people update their plans?
Perhaps the most important and beneficial reason why people should regularly update their estate plan is to guarantee that it remains functional despite the changes in their life. With appropriate updates, people can prevent unnecessary disappointment such as their inheritance going to an ex-spouse because they forgot to update their plan. Forbes reminds people that planning their estate is just the beginning of the process. Keeping their plan updated and current is critical for it to function the right way.