The Millennial Parent: How often should I update my estate plan?

Creating an estate plan is an important step in ensuring that your assets and affairs are properly managed and distributed after you pass away. However, creating an estate plan is not a one-and-done process. Your estate plan should be reviewed and updated regularly to ensure that it reflects your current wishes and circumstances. In this article, we'll discuss how often you should update your estate plan and the factors that can influence the need for updates.

What is an estate plan?

First, let's define what an estate plan is. An estate plan is a set of legal documents that outlines how your assets will be managed and distributed after your death. A basic estate plan typically includes a will, a durable power of attorney, and an advance healthcare directive.

The will specifies who will inherit your assets and how they will be distributed. A durable power of attorney designates someone to manage your finances if you become incapacitated. An advance healthcare directive specifies your medical wishes if you become unable to communicate them.

Why update your estate plan?

There are several reasons why you may need to update your estate plan. Life is unpredictable, and circumstances can change quickly. Here are some common reasons for updating your estate plan:

1. Changes in family status: If you get married, divorced, have children, or have grandchildren, you may need to update your estate plan to reflect these changes.
2. Changes in financial status: If your assets or liabilities change significantly, you may need to update your estate plan to ensure that your wishes are still being met.
3. Changes in health: If you or a loved one experiences a significant change in health, you may need to update your advance healthcare directive.
4. Changes in the law: Estate planning laws can change over time, and it's important to make sure your estate plan is still in compliance with current laws.

How often should you update your estate plan?

There is no one-size-fits-all answer to this question. However, a good rule of thumb is to review your estate plan every three to five years. This will give you a chance to make any necessary updates based on changes in your life, finances, or the law.

Creating an estate plan is an important step in ensuring that your assets and affairs are properly managed and distributed after you pass away. However, your estate plan is not a one-and-done process. You should review and update your estate plan regularly to ensure that it reflects your current wishes and circumstances. By keeping your estate plan up-to-date, you can ensure that your wishes are carried out and your loved ones are taken care of after you pass away.