Is it time to update your estate plan?

On Behalf of | Nov 9, 2020 | Estate Planning

As a resident of Minnesota, you may have likely sunk years of time and effort into creating your estate. After that, it is equally important to create a manageable estate plan. This will allow your beneficiaries to inherit your assets with minimal legal friction. 

After you create your plan, you must keep it updated, too. After all, the plan only benefits others if it accurately reflects your life at the time of your death. 

Life changes tie to estate plan updates

Forbes looks at some potential reasons to update your estate plan. Most tie to big life changes. In particular, financial and familial changes rank near the top. After all, your finances determine how many assets you can give. Your familial situation often dictates who your beneficiaries are, too. 

Examples of familial change include both losses and gains. For example, a loved one may pass away. You might get a divorce. You may simply go your separate ways from a family member or loved one. In these cases, you want to remove the person from your estate. Other times, you may want to add someone. This can include remarriage, adoption or childbirth. 

As for financial changes, you must include losses and gains here, too. Examples include losing money to debt or bankruptcy, or gaining assets through inheritance. 

Review every three years

Of course, you do not need to wait until you go through a life change to review your plan. In fact, experts suggest you review every 3 years even without major life changes occurring. This lets you make sure your plan reflects your current wishes, even if you may have forgotten a few small details.