If you have already created an estate plan, you might wonder about altering and updating your plan as your life continues to change.
Your estate plan is not set in stone, and you can revisit and modify it. In addition, you can choose to update your plan regularly and in response to important life events.
Periodic financial planning
It could benefit you to revisit and update your financial planning periodically and include your estate plan in those revisions. Regular modifications can help your plan stay current, as changing regulations and tax policies can affect your estate. How often you choose to evaluate your finances depends on the size and complexity of your estate. Whether you revisit your estate plan every quarter or every few years, you can keep your will and other important documents about end-of-life care and trusts up-to-date.
Responding to life’s changes
Major life changes can impact how you intend to pass on your assets and other estate planning concerns like guardianship and powers of attorney. For instance, if you marry someone or obtain a divorce, your plans should reflect those changes. Furthermore, the birth of children and grandchildren can impact your estate plan. Likewise, if a loved one becomes impaired or disabled, you can change your plan to account for that. You might also revisit your estate plan if you inherit money or property. Finally, if you start a new business or retire from your profession, you should examine your estate plan.
Creating your estate plan is only the first step. It is crucial to update key documents such as your will, trusts and end-of-life plans.