Your estate plan is critical in protecting your assets and ensuring your loved ones will be cared for well into the future. However, simply setting up your plan might not be enough. As life happens, you must revisit and update your plan to match your current circumstances.
These regular updates ensure that your assets reach the people you care for, even when you are no longer around. This ongoing process prevents them from going through legal complications and disputes, reducing the burden during times of grief. When is it time to update your estate plan?
After marriage or divorce
Adding your spouse to your estate plan is critical once you get married. You may want to include them in your will, appoint them as power of attorney or as a beneficiary on insurance policies and retirement accounts. On the other hand, if you go through a divorce, removing your spouse from these documents is crucial unless you still want them to benefit.
Arrival of a child
The birth or adoption of a child is another crucial moment to update your estate plan. Aside from including them as a beneficiary in your will, you may also want to designate guardians who will care for them if something happens to you or your spouse. Adding your children to your estate plan as soon as possible is essential as it concerns their future well-being and security.
Significant changes in assets
If you acquire significant assets like a house or an inheritance, revisiting your estate plan should be one of your priorities. Changes in your financial situation greatly impact how you want to distribute your assets. Keeping your estate plan aligned with your current financial status will significantly help your heirs dodge legal complications.
Many events can uproot or completely transform your life as you know it. That is why it is essential to revisit and revise your plans long before you and your loved ones actually need them.