California residents may know the importance of creating an estate plan. It’s just as important to continually re-evaluate your estate plan to ensure it meets your needs.
When to create an estate plan
Some people may avoid creating an estate plan. No one knows when accidents may happen or when there will be an emergency. If you have a history of health issues, consider setting up your estate plan as soon as possible.
Other people might wait until they’ve built up some equity or until they have kids. You could hypothetically create an estate plan as young as 18 years old if you wanted.
When to update your estate plan
Say you set up an estate plan at 35 and then forget about it. A lot could change between then and when you need the estate plan.
Generally, you’ll want to update your estate plan with every major life change. For example, a new job is a great chance to review or update your estate plan. Other life events include:
- New child
- Marriage / Divorce
- Moving out of state
You might also consider updating your estate plan after a death in the family. It could cause problems for your estate plan if you have a deceased relative listed as a beneficiary or power of attorney.
What to look for when updating your estate plan
You’ll want to check that your estate plan addresses all of your loved ones so no one important is left out. You also should ensure you have all accounts and assets listed in your estate plan.
Thinking about your estate plan may be depressing. But doing frequent check-ins with your estate plan and having conversations with your family will save them time, money, and heartache when you’re gone.