Creating an estate plan ensures that people carry out your wishes after you die. However, life is constantly changing, and so should your estate plan.
These are the times when updating your plan is important to ensure it accurately reflects your current circumstances and desires.
Birth or adoption of children
The arrival of a new child or the adoption of a child is a joyous occasion, but it also brings important responsibilities with it. Updating your estate plan ensures that you provide for your children and that people give them their inheritance according to your wishes. At this time, you may need to pick guardians for minor children, establish trusts or adjust beneficiary designations to include your new family members.
Differences in financial situation
Significant changes in your financial situation, such as inheriting a large sum of money, starting a business or experiencing a substantial increase or decrease in assets, may lead to a review of your estate plan. Updating your plan allows you to reassess your goals and make adjustments to asset distribution.
Move to another state
Moving to a different state can have legal implications for your estate plan. Each state has its own laws regarding taxes and probate, so it is important to review your plan when relocating. Updating your plan ensures that it complies with the laws of your new state and remains valid and effective in administering your estate.
Changes in health
Changes in your health or disability may require adjustments to your estate plan to make sure that people handle your medical and financial affairs correctly. Updating your plan allows you to pick healthcare proxies, establish powers of attorney and create instructions for end-of-life care. This provides you with peace of mind knowing that people will manage your affairs as you desire.
Your estate plan is not set in stone after you first make it. Regularly reviewing your estate plan ensures that it remains effective no matter what you plan to do next.