An estate plan can help you prepare for your future. It can also provide stability and guidance for your surviving loved ones after your death.
Overlooking the task of periodically updating your plan could render it inoperable. Knowing why you should review your plan might give you the incentive to regularly monitor its effectiveness.
Avoid family discord
Imagine the dismay of your family if something happened to you and all they can find is an outdated description of your assets and who should get them. Such scenarios practically beg for discord to begin.
A well-written and updated estate plan can provide critical support to your family and give them the information they need to close your estate the way you would have wanted. With a clear understanding of your intentions, your family may be more unified and willing to work together to honor your legacy.
Reduce costly probate
Along with family disputes, your estate plan could end up in probate if outdated documents contradict each other. In such cases, your family may need to take your case to probate which could cost a lot of money. This may jeopardize the value of your estate.
As a good rule of thumb, CNBC recommends updating your estate plan every few years. If, however, you experience a significant life change such as marriage, divorce or a move across state lines, update your plan sooner to make sure everything remains in working order. Your diligence can make a difference in how impactful your plan is to the people you care most about.