Updating an estate plan is critical. Many people write a plan and assume that they’re done. They have a will on file, so they don’t need to think about it again.
But this is a problematic stance to take, as it could mean that the estate plan is significantly outdated by the time that person passes away. Say that they write a will in their 40s but then live into their 80s before they die. Everything will be much different, from the makeup of their family to potential beneficiaries to the assets that they own.
1. Updating on a schedule
To address this, some people decide to make updates on a schedule that they work out in advance. It can be very simple. Someone may decide to write an estate plan and then come back every year to review the terms. If there have been changes—they’ve lost or gained assets, gotten married or divorced, or seen the birth of a grandchild or another beneficiary—then they update the plan so that it fits their new circumstances. If there haven’t been any changes, then they know that the plan is likely to last until the next year.
2. Updating at key times
On the other hand, some people don’t want to make updates on a schedule, but they just look for any major changes in their life that mean they need to reconsider their plan. If a grandchild is born, a grandparent may want to re-draft their will to include them. If they sell a significant asset—a family business, vacation property, a home—then they may need to take that asset out of the estate plan or add in provisions for the earnings from the sale.
Both of these tactics can work, as can combining the two. The key is just to understand how important updates are and to know what legal steps to take.
