While it is important to write a will and draft other estate planning documents, it is also crucial to remember to update these documents at certain times. Failing to do so may mean that they are significantly outdated. If someone writes a will when they are 40 years old and does not pass away until they are 75, that will may barely apply to their family and their estate at the time of their death.
But when and why should these updates be made? It is important to address key life events that significantly change someone’s estate or their family and beneficiaries.
Potential life events
Everyone’s situation is unique, but some examples of key events that may lead to an update include:
- Getting married
- Getting divorced
- Having a child
- The passing of a beneficiary who was previously named in the will
- The birth of a grandchild
- Selling or receiving significant assets
- Being diagnosed with a disease, especially something significant like cancer or dementia
It is also important to consider relationship changes or conflicts. For instance, someone may initially include one of their adult children in their estate plan, but if the two become estranged over the years, they may opt to update their plan and disinherit that specific individual.
Setting up a schedule
One tactic for making updates to an estate plan is to look for events like those mentioned above and then make updates whenever they are necessary. However, although many people intend to do this, the reality is that they often procrastinate or overlook the updates entirely. For this reason, some people find it easier to set up a schedule in advance, such as determining that they will review and potentially update their estate plan every two years.
You can address this either way with your own plan, as both approaches can work. The most important thing is to understand the need to make these updates and to take appropriate legal steps to do so at the correct times.
