For your estate plan to remain effective, you need to keep it updated. Knowing when to do this means there is less chance of problems for your executor and family when you die.
One recommendation is to check the estate plan over every year or two. You could make this one of your New Year’s traditions so you don’t forget. If nothing has changed, you can just put it away until next time.
You should also update your estate plan when a major life event happens. Here are some examples:
Acquiring or losing major assets
Your house is one major asset, but there are many others that could require an estate plan update. For example, starting or ending a business or opening or closing a savings account. You need to write in your plan what you wish to happen to any new asset you acquire and remove any asset you no longer own to avoid confusion.
Marriage and divorce
When you marry someone that will automatically entitle them to part of your assets (unless you put a prenuptial in place), perhaps at the expense of existing beneficiaries, meaning you would need to reallocate things. Many people give their spouse power of attorney, which they would probably want to revoke when divorcing them. You’d also need to update your plan when divorcing to ensure things like beneficiary designations are not still destined for your ex.
Family additions and losses
If you have a child you likely wish to write them into your plan, and the same applies for any more children you have. If you lose a beneficiary, or someone you had down for a role such as executor or health care power of attorney, you’d again need to alter your plan to replace them.
With appropriate legal guidance, you can stay on top of your estate plan to increase the chance that it serves its purpose without problem.