When's the last time you've looked at your will? If it's been a while, or you've recently undergone some significant life changes, it's time to review your estate plan to ensure it still meets your needs. Forbes explains when you must update your will so it continues to protect your assets and ensure your family receives them as you see fit after you're gone.
Your executor will be responsible for carrying out the terms of your will. This is a huge responsibility, and as a result, it's crucial that you select the best person for the job. Even after careful selection circumstances can change over time. You must consider whether the person you chose continues to meet your needs. If not, it's time to update your will with a new appointment so you can rest assured that all the necessary duties will be carried out effectively.
Moving can also complicate your estate plan. Each state has its own specific rules regarding estate planning. If you created your will in one state and moved to another, it might not be the best fit. This is especially true when it comes to taxes, as not all states levy estate tax. If you're concerned about the rules of a new state and whether your plan still makes sense, consult with an attorney to make any important updates.
Changes to interpersonal relationships also warrant a review of your will. A new marriage, divorce, a new baby, or adoption should all trigger a review of your will and other estate planning documents. Along with wills and trusts, you should also look over things like beneficiary designations, which are associated with life insurance policies and retirement plans. These designations actually override information contained elsewhere in your estate plan. That's why it's so important to ensure all documents match.