Even when you finalize your estate plan, you should actively maintain and update it as needed. Overlooking important steps could cost you a lot of money and jeopardize your plan’s value over time.
Updating your plan the right way enables you to maintain its effect despite life-changing circumstances. Your heirs will appreciate the effort you take to keep things as clear and current as possible.
A reliable estate plan involves a lot of moving pieces that directly impact each other. When you notice something that needs updating but you overlook other related aspects, it could complicate things and cause confusion. CNBC recommends reviewing your estate strategy every few years to keep things in working order. If you do come across an update you need to make, pay attention to the details and ensure ancillary documents receive adequate attention.
You can claim one thing on your estate plan, but if your financials do not match what your plan says, your intentions could backfire. Each time you make changes to your plans, double-check your financials and make sure everything aligns. Maintaining consistency across all platforms could reduce confusion and lower the risks of costly probate down the road.
Some examples of situations that could require an update include relocation across state lines, changes to leadership in a business you own, the births of children or grandchildren, as well as divorce or remarriage. Your diligence in cautiously and regularly updating your estate plan will give you better control of its effectiveness.