Estate planning is a critical aspect of everyone’s life. It is not just about managing your assets -even though it does that- but also about ensuring you take care of your family members and loved ones after you pass on.
Life can take unexpected twists and turns, so you should be prepared as much as possible in this area, particularly if you have substantial assets and several beneficiaries. Let’s say you have a large family and want to know how often you should update your estate plan.
Updating your estate plan
Keeping your estate plan up-to-date is one of the most important things you can do. As mentioned above, life is unpredictable, but one thing you can control is what you do with your assets.
Life changes
Suppose something changes in your life, such as a marriage, divorce, a new baby, adoption of a child or death of a loved one. In that case, it may be time to update your estate plan to reflect your current wishes and desires.
Changes in your finances
If you experience any changes in your finances, like acquiring or selling assets or changes in your income and investments, it is a good idea to look at your estate plan so the information is accurate.
Legal changes
The law changes and evolves with time, and tax law is no exception, which means that if there is a change in tax laws, there could be implications for your estate plan.
It is also essential to check your estate plan every three to five years at a minimum to ensure you remember what you have in it. Sometimes, it is easy to forget; these are mistakes you do not want to make. Speaking with your estate planning attorney and letting them help you through this process can be helpful and make the entire experience faster and less costly.