An estate plan can designate beneficiaries for personal property. It gives the testator an opportunity to choose the personal representative who carries out their last wishes. If they have children, they can name a guardian to take care of their children after a tragedy.
Estate plans may also include powers of attorney in case of a medical emergency and advance directives discussing an individual’s medical preferences. A robust estate plan can protect people against hardship in the event of a medical emergency and can provide them with peace of mind as they go about their daily lives.
Eventually, the terms established in an estate plan may become outdated. How often should testators review and update their estate planning paperwork?
Estate plans require regular maintenance
For an estate plan to provide proper guidance and protection, it needs to accurately reflect the testator’s circumstances. Most people need to review their estate plans after any significant changes to their family circumstances or finances.
Getting married or divorced is a reason to update an estate plan. So is having another child or losing a family member. Changes in family dynamics may make an estate plan necessary as well. People may not want an estranged parent or child to inherit from an estate or hold a position of authority.
Financial changes can include acquiring or selling off assets listed in estate planning documents. Becoming a homeowner, starting a small business or establishing a retirement account are all examples of economic activity that might warrant estate planning revisions.
Changes in health can also be a reason to review and update an estate plan. Individuals diagnosed with chronic or terminal conditions may feel compelled to update and expand their estate plans. Preparing for retirement and considering the potential decline that can come with advanced age may also affect the terms people feel their estate plans need to include.
Most major life experiences can be an opportunity to update an existing estate plan. Other changes can occur very slowly over time, making a review every few years a smart decision for most people. Reviewing estate planning paperwork at least a few times per decade can give people the opportunity to make adjustments based on fluctuations in their family or financial circumstances.
Keeping an estate plan up to date is almost as important as establishing one initially. Testators who occasionally review and update their documents can feel more confident about the protections they have put in place for themselves and the legacy they hope to leave for their loved ones in the future.
