Estate plans can help protect the people who draft them and people with close relationships with the testator. Wills and other testamentary instruments provide insight into how to distribute someone’s assets after they pass.
The testator can also designate trusted people to care for their children or oversee estate administration. Trusts can provide structure for the management and distribution of valuable assets. Advance directives can explain medical preferences and empower the right people to act during an emergency.
People who have established estate plans are already ahead of the curve, as many people never draft estate planning documents at all. That being said, testators may be overconfident about their protection because their documents have become outdated. People generally need to commit to routinely reviewing and occasionally updating estate planning paperwork.
How frequently should people update their estate documents?
Whenever life changes significantly
No one ever knows when their spouse might cheat or a loved one might suddenly die. Estate planning adjustments are often necessary after significant changes in personal circumstances.
Any new additions to the family, unexpected passings or changes in marital status may require an estate plan review and possible revisions to documents. Recognizing that becoming a homeowner or starting a small business could be a sign to update an estate plan can help people ensure that they have proper protection and that their loved ones do as well.
When life changes slowly
Not all shifts in personal circumstances are abrupt. People may slowly become estranged from certain family members or may find that their financial circumstances change over many years. As such, it is generally advisable to commit to a review of estate planning paperwork every three to five years.
People may not realize until they read over their documents how drastically their circumstances have shifted in just a few years. Making an effort to review documents occasionally and change them as necessary can protect people from scenarios in which their documents become outdated because their personal relationships or financial circumstances have evolved over time.
Drafting estate planning documents is important, but so is a commitment to keeping them as updated as possible. Making arrangements to review documents occasionally and revise them as necessary can help people optimize their protection from uncertainty and familial upheaval.