Many people make their estate plans and never think twice about how their assets are managed. As the years go by, these estate plans may become outdated. If these testators never make changes to their estate plans, then it could create issues for beneficiaries.
Keeping an estate plan up to date is a crucial part of the process. It is often suggested that an estate plan is updated every three years or a maximum of five years to include new assets and investments. You do not have to have a specific date to change your estate plan. There are many other reasons to update an estate plan, including after having a falling out with a beneficiary, getting married, having a child or changes in state tax laws.
Once you decide when to update your estate plan, you may need to consider what changes you should make. Here are a few reasons.
What changes should you make?
There are many aspects of an estate plan that you can change. One focus to start on is your list of beneficiaries. You may want to reconsider who you have named as beneficiaries and what assets they may inherit. For example, you may want to name a new grandchild as a beneficiary. Or, you could make a trust to help protect your assets from estate taxes and probate costs.
You may also consider changing your power of attorney. Your current power of attorney may not have your best interests in mind or has passed away. You may also want to consider making an advance directive to help manage your end-of-life care. You may need to seek legal help to make changes to your estate plan.