Your estate plan is a vital document that outlines how your assets will be distributed and managed after your passing. It is essential to review and update your estate plan regularly to ensure that it reflects your current wishes and that it is in compliance with the law. But how do you know when it’s time to review your estate plan? Here are a few key indicators that it may be time for a review.
1. Life Changes
One of the most significant reasons to review your estate plan is when you experience a significant life change. This could include getting married, having children, getting divorced, or the death of a loved one named in your estate plan. These events can have a significant impact on your estate plan and should be reflected in your documents.
2. Changes in the Law
Estate laws can change over time, and it is essential to ensure that your estate plan is in compliance with the current laws. It is a good idea to review your estate plan every few years, or when there are significant changes in the laws that may affect your plan.
3. Asset Changes
If you have acquired new assets or experienced a significant change in your financial situation, it is important to review your estate plan. This includes buying a new home, starting a business, or receiving a significant inheritance. Your estate plan should reflect your current assets and how they should be distributed after your passing.
4. Beneficiary Changes
If you have named beneficiaries in your estate plan, it is essential to review your plan if any of them have passed away or if your relationship with them has changed. You should also review your plan if you have had new children or grandchildren, or if you want to change who should receive your assets.
5. Power of Attorney and Healthcare Directive
It is important to review your Power of attorney and Healthcare Directive regularly to ensure that they are up-to-date and that they still align with your wishes. For example, if you have appointed someone as your Power of Attorney, and your relationship with that person has changed, it is time to consider appointing someone else.
It’s essential to review your estate plan regularly to ensure that it reflects your current wishes and that it is in compliance with the law. Life changes, changes in the law, asset changes, beneficiary changes, and changes in your Power of attorney and Healthcare Directive are all reasons to review your estate plan. Always work with an experienced and qualified estate planning attorney to help you review and update your plan.