An estate plan’s maintenance and care do not end when the estate plan itself gets created. It is important to review the estate plan periodically to ensure that it is still up to date.
What areas should you focus on when it is time to review your estate plan, though?
When to review your plan
Forbes discusses the timing of updating an estate plan. Generally speaking, you should review your plan at least once every three to five years. This gives you some time to refresh your memory and make sure that you have not had any changes of heart or wishes in the time since you last looked.
When doing a review, pay close attention to matters involving your assets and beneficiaries in particular, as these are the areas most likely to change.
Looking out for asset changes
When looking over your assets, be sure to keep in mind any major changes, whether positive or negative. For example, having to file for bankruptcy is a notable change in a negative way. On the other hand, inheriting a large estate from a deceased relative would count as a notable positive change. Keep an eye out for the transfer of assets, too, i.e. the buying or selling of property.
Focusing on beneficiaries
Regarding beneficiaries, you should watch for any name that you want removed from your estate plan. You may have lost people in your life due to estrangement, divorce, death, or other factors. You may have even gained new beneficiaries through birth, marriage and so on.
By focusing on these two categories in specific, you are less likely to miss anything important when conducting your review.