When should you update your estate plan?

On Behalf of | Jun 16, 2022 | Estate Planning

Many people go over their estate regularly, usually when they review their business or personal financial plan. You can review your finances once a year, once a quarter, or anywhere in between. However, financial experts recommend reviewing your estate at least every five years to make changes if necessary. If you need to update the details of your Michigan estate, here are some things to pay attention to.

Caring for your children through your estate

When you have a major event in your life, you should take a look at your finances and documents that detail your final wishes. You may want to make some adjustments to your estate planning if you have a new baby or welcome a new grandchild into the family. Once your child or grandchild is no longer a minor, you may want to go over your estate plan again to ensure your beneficiaries will receive all the assets you’ve designated for them. Your estate can also cover all or part of the costs associated with your child or grandchild’s college education.

Preparing for major life changes

Getting married or divorced is another reason to review your estate. In most cases, your spouse is your primary beneficiary for your retirement accounts and life insurance policies. You’ll have to make changes if you and your spouse make changes to your financial goals as well by starting a business or receiving a promotion. If your spouse passes away or is incapacitated, you may have to make adjustments to your list of beneficiaries. It’s also a good idea to take a look at your estate plan any time you get ready to buy a home or make any other major purchase.

Going over your estate plan regularly and making the proper changes based on your lifestyle and goals will secure your legacy and ensure that your heirs receive the assets you’ve left for them as efficiently as possible.