Often times people have the mistaken belief that once you execute an estate plan then you never have to worry about it again. However, your estate plan will evolve as you and your family’s circumstances evolve. A good rule of thumb is to review your estate plan every three to five years. Your estate plan may need to be updated if any of the following events have occurred:
The marriage, divorce, separation, illness, incapacity, or death of anyone included in your estate plan. In addition, the birth, adoption or death of children and grandchildren, or other major life events may require modifications to your estate plan.
What may have been an appropriate estate plan when your income and net worth were much lower or higher, may no longer be appropriate today.
Each state has its own laws. Anytime you move from one state to another, your estate plan should be reviewed and updated.
If you have a child with special needs due to a physical or mental condition, or if a beneficiary named in your estate plan has special needs, a Special Needs Trust may need to be created to ensure that their government benefits are not lost.
Anytime there is a change in the Federal Estate Tax law, changes in your estate plan may be required.