Should you update your estate plan?

As a resident of Colorado who has already created an estate plan, you are one step ahead of many people.

However, simply creating an estate plan unfortunately is not enough. Over the years, you will likely have to revisit it many times and possibly rewrite certain parts of it as you go.

Why should you update your estate plan?

There are numerous reasons to evaluate your estate plan. For example, laws do not always stay the same. You will want to be especially mindful of tax laws, as their changes can directly impact how you want to distribute your assets.

Relationships also constantly change and fluctuate. At one point in your life, you may want to leave certain things to certain individuals. However, you may grow distant from them or they may end up becoming incapacitated. They may pass away before you. In any of these cases, you will want to ensure that your estate plan reflects the most recent state of the people and relationships around you.

Keep your financial situation in mind, too. This is one aspect of your life that is likely to fluctuate. You want to ensure that you have all of the assets that you promise to your loved ones by the time you pass. If anything changes that either takes away from or adds to your overall assets, remember to change your plan to reflect this.

What should you do after making your plan?

After making alterations to your estate plan, it is important to continue monitoring changes in yourself and your environment. Take stock of the law in your area. Keep a close eye on the changes in your finances and personal relationships.

You do not need to continually be updating your estate plan any time there is a change. However, you should adjust it whenever anything significant happens in your life, or at least review it every few years.