Estate planning can help estate planners develop a comprehensive estate plan to care for their families. It is important to keep an estate plan current to ensure peace of mind for the estate planner and their family.
Knowing when to update an estate plan is an essential part of the estate planning process. One of the most important times for estate planners to update their estate plan is if they relocate to another state. Relocating to another state should trigger a review of the estate planner’s estate plan to ensure it complies with the laws in the new state where the estate planner now lives. It is also important to update an estate plan if there are any changes to the estate planner’s assets or liabilities to ensure all of their property is accounted for.
In addition, if the estate planner’s relationship status changes, or they have any major relationship change in their life, that is also a good time to update an estate plan. Estate planners should consider updating their estate plan to account for a marriage, death, birth or divorce. Lastly, another important situation to consider is if any of the designations in the estate plan becomes outdated or inappropriate such as the designation of an executor or trustee which should be kept current. Beneficiary designations on life insurance plans and retirement accounts should also be kept current.
Estate planning is a valuable tool for estate planner and families to understand the benefits of. Just as important as setting up an estate plan is maintaining one and keeping it current which estate planners should know how to do.