Michigan residents like you put a lot of time and effort into creating an estate plan. Unfortunately, this plan does not last forever. You need to update your estate plan to ensure that it remains true to your current life situation.
But when should you update it? Are there certain laws in place determining this, or is it up to you?
Keeping your estate plan updated
Forbes discusses some of the reasons to update your estate plan. First, there are no laws that determine when you should look through your estate plan to update it. However, experts generally agree that you should review your plan every 3 years regardless of life changes. This allows you to refresh your memory and see if you must change anything.
Watching out for major life changes
Outside of this, you should review and update your plan any time you go through a major life change. In particular, focus on changes to your family structure, finances and where you live. If you move, you want to ensure your estate plan fits the laws of your new state.
If your family structure changes, you want to make sure that your loved ones get the assets you want them to have. This may involve removing an ex-spouse from your estate plan or adding an adopted child.
If your finances change, updating this allows your estate plan to reflect your true assets. This is of crucial importance because your estate plan’s primary purpose is handling the division of your assets. Thus, you want to update any time you suffer from great financial loss or enjoy large gains. These are among the most important reasons to review your estate plan.