Creating an estate plan is a crucial part of planning for your future. However, the initial process of creating one is not the only important aspect of estate planning. Many people do not realize that they need to review and update their estate plan periodically in order to maintain its effectiveness.
You should check and review your estate plan regularly and there are several reasons to update your estate plan.
Reasons To Change Or Update Your Plan
As a rule of thumb, checking your estate plan approximately every five years is a good idea. This can help you catch various items that will need to be updated including:
- New additions or deaths in the family
- Marriages or divorce
- Moving states
- Inheritances or another large asset addition including businesses and real estate
- Outdated retirement plans or other accounts
- Needed changes to executors or trustees
You may also want to change your estate plan if you want to make changes to your trusts or will, or update power of attorney or other persons named in your estate plan.
These are just a few reasons your estate plan should be updated and changed. However, a particularly important reason to review and change your estate plan has nothing to do with your personal situation. Tax laws change frequently change and are often different between states.
Consulting with your estate planning attorney can help you keep up-to-date with these constantly changing laws so you can be sure your plan is secure and efficient. Checking periodically for tax law changes is crucial.