It’s important not to neglect your estate plan. Simply drafting a will and other estate planning documents is a great first step, and the earlier you do it, the better. Many people put it off, waiting until retirement or until they gather more financial assets. However, it’s usually best to establish an estate plan well in advance because life is unpredictable.
That said, if you write a will when you are 40, you may still have several decades during which life will change significantly. If you neglect your estate plan, it could become massively outdated by the time your family needs to use it. Here are two general strategies to consider for reviewing and updating your estate plan.
1. Make changes as soon as they’re necessary
One option is to take a proactive approach and update your estate plan whenever a significant event occurs. Examples of these events include:
- Getting married or divorced
- Having another child
- The birth of a grandchild
- The passing of a beneficiary
- Receiving a serious medical diagnosis
- Selling or acquiring major assets
Essentially, any major life change that could impact your estate plan should prompt a review. For example, does a medical diagnosis mean you need to update your medical power of attorney? Have you sold an asset that was previously allocated to a beneficiary? By consistently making changes when needed, your estate plan stays current.
2. Make changes on a specific schedule
Another option is to set a schedule for reviewing and updating your estate plan periodically. For instance, you might decide to go over your documentation every two years. This way, you don’t need to worry about constant updates, but can address all necessary changes during those scheduled reviews. Even if your estate plan becomes somewhat outdated, it will only be as far behind as the most recent review.
No matter which method you choose, take the time to carefully explore the necessary legal steps to ensure your estate plan reflects your current wishes and circumstances.