Life does not stand still, but your estate plan will if you don’t actively keep up with it. Planning is not a one time event.
If you have a current will or full estate plan, you know the feeling of relief that hits as soon as you sign that last paper. It feels great to have your death and disability planning done. But as important as that is, it is just as important to review your documents regularly and make sure they still do what you need them to do. Sometimes it’s obvious your will or other documents need to be changed, but some things that might trigger the need for revisions aren’t as obvious.
Major Life Changes
A marriage, a divorce, and a new child are all times when the lawyer should be called and updates made to your documents. But you should also discuss whether changes are needed when you have a drastic change in income, or move to another state, or when you or a close family member develop a chronic health problem or disability. All of these major life changes might require changes to your plan and should be discussed with your attorney.
Many Purchases Should Trigger Updates
Wills and trusts lawyers help you plan for what you own at the time you are planning, as well as any reasonaly likely changes. But if you acquire or lose major property after you create your will, your plan may need to be updated. For example of you gain or lose a large life insurance policy or pension fund, or if you transfer assets from cash or stocks or real estate into another type of asset, there may be changes needed in your will to make sure that all property is distributed appropriately.
Annual Review
You may not need to make changes to your plan every year, but you should review your plan each year to be sure. A simple read through of your documents may jog your memory as to things you wanted or needed to change. Death and disability planning is intended to protect you and to carry out your wishes after death, and it is more likely to do so if you review regularly and keep it up to date.