Estate planning is a crucial part of preparing for the future, yet many people do not realize that they may need to make updates to their plan. As life evolves, so do our circumstances and priorities, making it essential to ensure your estate plan reflects your current wishes. Do you need to make a change?
Marriage
When you get married, you should update your estate plan to include your spouse. This could mean changing beneficiaries on retirement accounts, updating your will for joint property, or creating a trust for both partners. Marriage changes financial responsibilities and shared assets, so it’s important to make sure your estate plan reflects these changes.
Divorce
If you get divorced, you need to revisit your estate plan. You might need to remove your ex-spouse as a beneficiary, update powers of attorney or change your will to fit your new situation. Doing this quickly can help avoid problems with inheritance or legal issues later.
Birth or adoption of a child
When you have a new child, it’s a great time to update your estate plan. You might want to name a guardian for your child in your will, set up a trust to manage assets for them or add them as a beneficiary. Making sure your estate plan takes care of your child’s future is a smart move for any parent.
Death of a beneficiary or executor
If a beneficiary or executor in your estate plan passes away, you should choose new beneficiaries or appoint someone else to manage your estate. Keeping your estate plan current makes sure your assets go where you want and that someone capable handles the executor role.
Changes in your income or assets
Changes in your financial situation, like buying or selling major assets, starting a business, or getting an inheritance, mean you should review your estate plan. You might need to think about tax effects, update your will or trust and adjust how you distribute assets among beneficiaries
Changes in the law
Sometimes, estate planning laws change and can affect tax liabilities, inheritance rules and other parts of your plan. It’s a good idea to talk to an estate planning attorney regularly to make sure you follow current laws and optimize your estate plan.
Changes in your health
If your health changes significantly, or if a loved one’s does, you might need to update your estate plan. Think about revising healthcare proxies, powers of attorney, or living wills to reflect your current wishes for healthcare and financial decisions.
Updating your plan helps you keep up with life changes
Regularly checking and updating your estate plan when major life events happen is a smart way to make sure your wishes are followed. Whether you get married, divorced, have a child, or face other big events, keeping your estate plan up-to-date is an important part of managing your finances responsibly.
