Some people in Colorado might execute a will or trust, and then consider the matter open and shut. However, estate planning is truly an ongoing process. There are many reasons why it is good to review your estate plan periodically, to ensure it still meets your needs and wishes, as well as the needs of your loved ones.
One reason to review an estate plan is if you move out-of-state. Each state has its own laws with regards to estate planning. For example, some states make it mandatory that a surviving spouse inherits a certain amount of their partner’s estate. In addition, certain states still impose an inheritance tax or an estate tax on residents. If you move to a state with different estate planning laws than the state you executed the estate plan in, it may be time to review your estate plan to account for these differences.
Another reason to review an estate plan is if your family dynamics change. For example, a new child or grandchild might be born that you want to include in your estate plan. Or, if there is a death, divorce or remarriage in the family, you might want to change your estate plan accordingly. Sometimes family rifts occur that make it so that you wish to disinherit a person you had initially included in your estate plan. Any of these events may make it wise to review your estate plan to ensure it still meets your wishes.
A third reason to review an estate plan is if you gained, sold or lost a significant asset. This not only affects how much your estate is worth, but it also means that you may no longer have property that you had set aside for someone’s inheritance or you may have gained property that you want to include in your estate plan. By keeping your estate plan up-to-date with regards to your assets and liabilities, you can ensure that your goals are being met.
These are only some reasons why a person might want to review their estate plan. Of course, it is not necessary to wait until a major life event occurs to take a second look at your estate plan. Life constantly changes, and thus, your estate plan may need to change accordingly. Regularly reviewing an estate plan every few years can help ensure that it is sound and will accomplish what you wish.