Do you have an estate plan? If the answer is no, now may be a great time to consider putting one in place. But if the answer is yes, the next question becomes: when was your last estate plan update?
Life circumstances can change drastically from year to year. And some significant events should require you to ensure your estate plan reflects your current situation.
Different life events that require a review;
Marriage or divorce
Getting married or divorced is one of the most common life events that should trigger an update to your estate plan. Either event would likely involve a change to your will and beneficiaries. It may also require a change in powers of attorney.
Birth of a child
The arrival of a new addition to your family has important legal implications that need to be addressed in your estate plan. In particular, you will want to include them as a beneficiary in any existing wills and trusts, appoint guardianship for minor children, set up trust funds, and allocate adequate funds for their care in the event of death or incapacity.
Death of a spouse
Losing a spouse can be devastating. However, it is also one of the most important reasons to update your estate plan. New documents may need to be established if your original estate plan was based on both of you being alive.
Moving to another state
Many states have different regulations when it comes to estate taxes and probate. Depending on the destination state, certain documents may need to be added or modified for the plan to remain legally sound.
An estate plan is an essential tool that helps protect you and your family if you die or become incapacitated. And with so many life events, it’s not something you can do one time and forget about it. By ensuring your estate plan is up to date, you will know it accurately reflects your wishes and goals throughout your lifetime.