After creating your estate plan, you cannot simply let it sit and age. You must keep it updated so that it reflects your current life. After all, that is the entire point of an estate plan: to reflect your most recent wishes and desires.
But it may feel overwhelming to do full reviews. Instead, experts suggest focusing on the most crucial elements when doing your reviews once every three years. One of the biggest elements you may see mentioned are your beneficiaries. But why can they change?
Beneficiaries as a fluctuation in estate planning
When Forbes examines what part of the estate plan to review, they focus on areas of change. As mentioned above, beneficiaries make up a big portion of “potential change”. Like your assets, the people in your life may change at any moment. It is constantly in fluctuation. People may leave without warning or enter just as suddenly.
This means that in the 3 years between reviews, your beneficiaries are one of the areas most likely to have seen at least some change. Thus, it is crucial to double-check and make sure everyone gets listed in the right place, or removed if you feel it necessary.
Reasons for changes
Beneficiaries may change for any number of reasons. Someone may leave your life intentionally or unexpectedly. Death, divorce, disagreement and other external and internal forces can drive two people apart. Likewise, additions may happen for any reason. This can include an adopted or newborn child, a new spouse or a friend you grow closer to over recent years.
If you want to streamline the process further, consider contacting legal help. They can aid you throughout your review.