Creating an estate plan is an important first step, but many people forget that it is only a first step. After all, the point of an estate plan is to accurately reflect a person’s life at the time of their death.
To ensure that an estate plan is as updated as possible, it is important to do periodic reviews. But when is a good time to start?
Regular 3-5 year reviews
Forbes discusses when you should review your estate plan. Most people should review their estate plan at least every 3 to 5 years, even if they do not experience any major changes in their life. This is because some people may forget smaller changes that happened, or could find out through review that more things have changed than they realized.
Reviews for major changes
Outside of this 3 to 5 year measurement, a person should also review their plan any time they see major changes to certain areas of their life. This can include changes to the people in their life, because it affects beneficiaries. It also includes changes to assets, as this will change the overall worth of the estate and may impact the will, too.
Any time a person moves to a new state, they should take a look at the local estate plan laws, too. Many states have their own laws that dictate what allows a will or estate plan to be considered valid. No one wants their hard work invalidated on a technicality, so do not wait to do these important reviews.