An important aspect of estate planning is making sure to have your intentions updated regularly. You can update your estate plan at any time for any reason.
How long has it been since you made your estate plan? It is often recommended that an estate plan is updated every three to five years. Many people acquire new assets or make new investments within this timeframe. Updating an estate plan to include these new assets could help avoid future conflicts.
Yet, updating an estate plan to add new assets is not the only reason to make changes. Here are a few life events that could have you rethinking your estate plan:
Did you get married or have a divorce?
Marriage is a large event in many people’s lives. If you were recently married, you may want to take the time to include your spouse in your estate plan. They could be a primary beneficiary, for example. But, you may also want to name your spouse as a power of attorney or a guardian of a child from another relationship.
In contrast, you may also want to make changes to your estate plan if you had a divorce. You may no longer trust your spouse to take responsibility for their roles.
Did you have a child?
One of the greatest events in your life may be having a child. You can alter your estate plan to include your child’s future. For example, you could make a trust. A trust could be used to protect assets from challenges and taxes, and you can set aside a sizable inheritance for your child. This trust could also have limited access so that you know your child is using their inheritance responsibly in the future, such as for their education.
Has your financial situation changed? Maybe you had a recent health scare. Or, you had a falling out with a beneficiary. There are many reasons to update your estate plan. You can talk to legal help to learn about your options.