A major part of the estate planning process that many people overlook is keeping documents up to date. Over time people may need to make alterations to serious considerations in their estate plan so documents still align with their last wishes.
People may overlook updating their estate plans because they do not know when they should make changes. It can also be hard to know what changes should be made. Here is what you should know:
Updating your estate plan every 5 years
It is typically believed that an estate plan should be updated every three to five years. This is about the amount of time for people to make larger investments, such as buying a home, starting a business or investing in stocks.
However, an estate plan can be updated for just about any reason. Some people will update their estate plans after they get married. Others may make changes after they have children. It may also be necessary to update an estate plan once an individual is diagnosed with a serious medical condition.
Making important changes for your future
Once people decide when they should update their estate plan, they often have to consider what needs to be changed. The first thing many people consider altering is the list of assets that should distributed. There may also be changes to the list of beneficiaries — especially if relationships have changed over time. Another important consideration to alter in an estate plan is the power of attorney designations. These should also be reviewed to make sure that the chosen agents are still the best option for the job.
If you are altering your estate plan, you can reach out for legal help to learn about what changes you may need to make.