Many people don’t consider creating their estate plan. They may think it’s only for the wealthy or that they are too young. However, even though we don’t like to think about our mortality, it’s essential to be prepared for the eventuality.
But what if you have already created your estate plan? Life is full of events that bring significant changes. And those changes should be a reminder to review your estate plan and make any necessary updates.
When you get married or divorced
As soon as you decide to get married or divorced, you should update your estate plan to ensure that your wishes are respected in the event of unexpected circumstances.
You have a child
Having a child is a huge life change, and an important part of planning for your family’s future is updating your estate plan. It could include deciding who would inherit their guardianship should something happen to both parents. An estate plan can also help reduce taxes and provide insurance coverage if necessary.
You move to a new state
Estate plans are tied to the laws of each state, so moving can drastically affect the power and practicality of the documents you currently have in place. Additionally, assets such as real estate located in other states require estate planning documents tailored to that particular location.
Your financial situation changes significantly
A financial change could be due to a significant purchase, such as buying a house or starting a business, or because of a dramatic increase in assets.
You are getting ready to retire
As you approach retirement, it is essential to start thinking about updating your estate plan. You may want to consider the possibility of needing skilled nursing care and editing your documents to reflect those needs. Reviewing your plan ensures that your finances are in order and that any intended gifts or charitable donations are directed appropriately.
Your life is continually changing, and your estate plan should reflect those changes. Reviewing and updating your plan regularly ensures your loved ones are taken care of when you can no longer be with them.