Once you've created your estate plan, written your will and established trusts, it's easy to conclude that you're through with estate planning. But this is simply not true. As someone once said, the only constant in life is change. As life changes, estate plans need to be updated to reflect altered circumstances.

Many experts recommend that you review your estate plan every three years. At the very least, you should review your plans whenever there is a significant change with the people affected by your plans, or with your property holdings.

Many of the changes that can affect an estate plan have to do with children: birth or adoption of a child or grandchild; a child or grandchild reaching the age of legal majority; a child or grandchild marrying or divorcing. Also, a guardian may become unavailable or no longer qualified.

Other changes have to do with adults, such as the death of a beneficiary or the altered needs of one of your beneficiaries due to disability or illness. There may be other changes with an individual, which warrant an increase or decrease in distribution or even removing the person from your list of beneficiaries.

Changes in your own circumstances that should prompt an estate plan review include the death of a spouse, a divorce, or remarriage. A change in your state of residence is another reason your estate plan should be revised.

An estate plan regarding your propertyneeds to be current. Some of the changes that make it advisable to review your plan include: a substantial increase in the value of your assets; an acquisition of real estate in a state other than where you are a legal resident; transfer of property specifically mentioned in your existing estate plan; receiving an inheritance; purchase of additional life insurance; or a substantial increase in value of retirement plan assets.

Changes in the laws that affect your estate plan are another reason to review the plan with a professional on a regular basis. There may be a significant change in estate tax laws, for example, or changes in the laws regarding estates, probate, or trusts.

When your own plans change is another reason to review the estate plan. Obviously, the plan must be modified if you change your mind about how you want your estate distributed. Perhaps you've changed your mind about charitable distributions or there have been changes in your business relationships.

How to Review the Plan

Making formal changes to your estate plan requires the assistance of qualified professionals. However, before consulting with counsel, you may want to think through your desires completely. One way of doing this is to follow a simple process. First, list all the people and institutions to whom you wish to leave money or property. Then, make a list of all your property along with their approximate values. Calculate the total value of the property in terms of cash. Ask yourself, If my death had occurred yesterday, how would I want the property divided among the people?

This process should give you a starting place for working with a professional to be sure your estate plan stays current with all your life circumstances and your wishes.

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