The second law of thermodynamics states that:
“the entropy of an isolated system which is not in equilibrium will tend to increase over time, approaching a maximum value at equilibrium.”
What this means for our purposes is that things are always changing (unless you’ve reached absolute equilibrium, in which case you have my hearty congratulations). When your life changes, as we’ve established it will, it’s important that your estate plan change with it. Reviewing your estate plan every 1-3 years is essential to keeping it up to date and working the way you intended it to work. Luckily, reviewing your estate plan can be quick and easy if you know what you’re looking for. Here are 5 key components you’ll want to review:
1. Fiduciaries
2. Assets
3. Distribution and Beneficiaries
4. Health Care
5. Legal Updates
If we’re lucky, our lives are constantly changing—our families evolve, our finances improve or decline, we meet and form strong relationships with knowledgeable friends and professionals. It only makes sense that your estate plan should change too. What seemed best for your family 4 years ago might not be the ideal situation now. By reviewing and updating these 5 components on a regular basis, and touching base with your attorney, you will insure that your estate plan will continue to protect yourself and your family the way you intended it to when you first created it.