Your estate plan tells your loved ones what you want to happen with your assets when you pass away. It also sets up the plan for what happens if you become incapacitated. Many adults don’t realize that creating an estate plan isn’t a one-time deal. If you’re one of the responsible adults who have already gotten an estate plan established, you need to ensure you review it periodically.
Under ideal conditions, you’ll check your estate plan every three to five years. You also need to check it if any major life changes occur or if there are changes in laws that apply to your situation.
What major life changes require an estate plan check?
There are several major life changes that necessitate an estate plan check and probably an update to it. These include:
- Having a child or adopting a child
- Getting married or divorced
- Moving to a new state as your primary residence
- Buying or selling assets
- Children aging into adulthood
- Someone in your plan passes away or becomes disabled
- Your relationship with a potential heir changes
When you update the estate plan, you need to look at more than just who gets what. Ensure you check the person you have named as administrator, as well as the people who have given powers of attorney to.
Always having an up-to-date estate plan gives you peace of mind since you know your loved ones will be cared for as you intend. Working with someone who knows your wishes and who can help you get everything set up can make this process less stressful.