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When is it wise to revisit your estate plan?

Estate planning is an important financial step that helps ensure that your assets end up where you want them to end up. However, your circumstances and goals can change over time, making it important to regularly revisit your estate plan.

By staying vigilant and revisiting your plan as needed, you can ensure that your assets undergo distribution in accordance with your wishes and protect your loved ones’ financial future.

Major life events

Life is full of significant events that can impact your estate plan. Marriage, divorce, the birth of a child or the death of a loved one are all life-changing events that should prompt you to revisit your plan. For instance, after a marriage, you may want to include your spouse as a beneficiary.

Financial changes

Changes in your financial situation, such as receiving an inheritance, starting a new business or facing financial hardships, can necessitate updates to your estate plan. You may need to adjust your beneficiaries or the distribution of assets to reflect your current financial status.

Moving to a new state

Relocating to a new state can also influence your estate plan. Different states have varying laws and regulations related to estate planning, so it is important to review and adjust your plan to comply with the specific laws in your new state of residence.

Aging and health issues

As you grow older, your health may deteriorate, prompting another look at your estate plan. You might want to establish a healthcare proxy or a living will to ensure your medical preferences come to fruition if you become unable to make decisions for yourself.

New family members

The addition of new family members, such as grandchildren, can be a compelling reason to update your estate plan. You may want to allocate assets to ensure their financial security or make provisions for their education.

While creating and maintaining an estate plan helps you maintain control over your personal and financial affairs, CNBC reports that 67% of adults in America do not have one. Drafting even a simple estate plan and revisiting it periodically helps ensure the plan continues to align with your wishes, regardless of what life throws at you.