When and how often to review your Estate Plan
By Raisah Khan
An estate plan, by its inherent meaning, is intended to adapt and cater to the life of each person whom it serves. Thus, clients are often speculative as to how often they should review their own estate plan. Lawyer Shannon Liu Shair recommends revisiting one’s own estate plan at least once every three years or when there is a big life change. Many people also review their estate plan when they are reviewing their financial plan. The following are some examples of life events that may warrant reviews or edits to an Estate Plan:
Someone in the family has passed away
Birth or adoption of child or grandchild
Child or grandchild needs educational funding
Change in number of dependents (i.e. taking care of another adult)
Marriage or divorce
Illness or disability of a spouse
Change in insurance coverage
Experiencing a large increase in wealth that could impact taxes/any major financial changes or changes in assets
Federal or state laws regarding taxes or investments change
Career changes
No longer having a relationship with a nominee and thus needing to appoint different nominees
Children are now adults and parents may want adult children to make decisions instead of previous nominees
Location change to another state: different states may have slightly different tax laws
Qualified retirement plan becomes outdated
It is always important to be thorough and perform due diligence when creating and maintaining one’s estate plan! There is no harm in checking more often than not. It also is vital to ensure that your trust is fully funded, for instance, when opening new accounts or buying real estate.
Sources:
https://www.fidelity.com/life-events/estate-planning/update-estate-plan
https://www.legalsweeney.com/how-often-should-you-review-your-estate-plan/