Too many people adopt a “one-and-done” attitude when it comes to their estate plans. This can backfire on them and their heirs significantly.
As life changes, so too might a person’s wishes for their assets. Many situations necessitate a good review of all elements in an estate plan to ensure a person’s wishes accurately reflect their current life realities.
Family member changes
Children grow up, get married and start families of their own. One family member gets divorced. A sibling or parent dies. These events reflect normal, everyday changes in a family’s world and each of them create good reason for someone to update a will, trust or other aspect of an estate plan according to Fidelity Investments. A person may create a will one year only to see three new grandchildren born into the family in subsequent years. Without an update, those grandchildren may end up excluded from the grandparent’s inheritance.
Significant changes in a person’s assets or debts
A person might sell a home or business, buy a new home or business, come into his or her own inheritance, or something else. When a person’s financial assets and debts shift notably, the estate plan related to those things should shift as well.
New or amended laws come into play
As explained by Forbes, both state and federal laws impact an estate plan. These laws may change over time and make a former decision not as viable or desired. When a person moves to a new state, the estate plan may not fit the new state’s laws and require an update.