Once you have taken the step to create an estate plan, you should realize that you aren't done with the estate planning process. You will have to go through your estate plan periodically to ensure that your plan is up-to-date. In fact, you will also have to make sure that your assets and insurance policies also reflect your current wishes for your estate.
When you are considering your estate plan, you have to consider how you want your assets divided. This might change for a variety of reasons. If a beneficiary has passed away or become a drug addict, for example, you might need to change your estate plan. You might also need to change your estate plan if your wishes for your durable powers of attorney or health care advance directives have changed.
As the years go by between creating your estate plan and your death, there is a good chance that your assets will change. You might buy new real estate or sell some assets. You must update your estate plan and ensure that your current assets are set up so that they can be distributed based on your estate plan. One factor that must be considered regarding your assets is how they will be taxed.
Finally, look at your life insurance policy. Do you have enough coverage? Is the beneficiary still the person you want? Asking yourself those questions can help you to determine if you need to update your life insurance policy.
It is very important that you ensure your estate plan is always up-to-date. If you have any questions about your current estate plan, seek out answers so that you can be sure your plan is ready to be executed when you pass away.
Source: TIME, "Estate Planning Checkup: 3 Items to Review Now," Tracey Craig, Jan. 20, 2016