A common mistake many make is setting up an estate plan and forgetting all about it, thinking that they have taken care of that bit of business. However, recent developments in your life may need you to revise an estate plan to incorporate the new changes.
Have you been divorced since you made your estate plan? Have you added more assets to your portfolio? If so, it may be time to make some revisions. Here is what you need to know.
How often should you do it?
While there is no stipulated time to review your estate plan, it is advisable to do it at least once every couple of years. If there is a change in circumstances that warrant a revision, such as death or legal separation, it is important to do it as soon as possible. Ensure that you got through every detail in the estate plans, including the guardians, executors, or the beneficiaries you’d wish to include or exclude.
Redesigning your estate plan
If your estate has grown and you think it’s best to change the original plan, you may revise your current arrangement. For instance, if you have a conventional will but wish to avoid probate, you can redesign your estate plans and revoke the will. It could save your estate a fortune if you avoid probate fees and the costs associated with the whole probate process.
For a seamless transition of your estate to your beneficiaries, you need to be aware of the pros and cons of the options available before making a call. That way, your heirs will assume control of their share of assets and property as soon as you are gone, which is essentially the whole point of having an estate plan in the first place.