This blog has been discussing estate planning in depth recently and the importance of setting up an estate plan and having a will and that it is never too early to begin that process but an important for the overall estate planning conversation is also knowing when to update an estate plan and understand the importance of regularly updating an estate plan. Estate planners should know when they should update their estate plan and remember to keep it current.
Estate planning does not stop with an estate plan because it is equally important to update an estate plan once it is in place. A good rule of thumb to follow is to update an estate plan every three years. In addition, there are certain times in the life of the estate planner that should occasion a look at the estate planner's estate plan. Estate planners should review their estate plan if they move to another state to ensure their estate plan is in compliance with all the estate planning rules in the new state.
In addition, whenever the estate planner's relationships change, it is time to update their estate plan. This includes when the estate planner marries or divorces are has a child. It can apply in other relationship change circumstances as well. It is also important to ensure all beneficiary designations, such as on a retirement plan, are up-to-date. It is also time to update an estate plan when the estate planner's assets and liabilities change.
Estate planning is important to address and to address properly. This means that it is an ongoing process and that an estate plan should be both developed and them revisited over time to ensure the wishes of the estate planner are reflected in the estate plan.