When should you update your estate plan?

When should you update your estate plan?

| Sep 8, 2020 | Estate Planning |

As a resident of Utah, you are already ahead of the curve if you have an estate plan written. But you cannot just write an estate plan and have that be the end of it. Instead, you must update it often.

But when should you update it? Are there certain times in your life where an update is necessary? Is there ever a time in which an update is mandatory?

Major changes in life influence estate plans

Forbes looks at times in your life where it is prudent to update your estate plan. They note that there is never a time where it is mandatory by law to update your estate plan. However, there are certainly times in which it would serve a purpose for you and benefit you to update it.

Many of these times involve major changes in your life. The primary categories include family and financial changes. For example, you may remarry or divorce. You may adopt a child. You may want to designate a different guardian / conservator for your children. As your family changes and grows, you want your estate plan to reflect who gets what in an accurate way.

The same goes for your assets. After all, your will discusses how your assets are going to get divided among your loved ones. This cannot get finished if your estate plan does not accurately reflect your wealth. Update your plan every time you come into a significantly large amount of assets or fall into notable debt.

Regularly reviewing your estate plan

But what if you have had no significant life changes? Experts still suggest that you update your estate plan every 3 years, or thereabouts. This way, you can still review your plan and see if it holds up to your current life situation. The process of reviewing and amending an estate plan is generally less time consuming and less expensive, especially if you have a trust.