Estate planning is a greatly rewarding endeavor. An estate plan would help your loved ones decide how assets are distributed according to your wishes. You can even set up a power of attorney to act on your behalf if you’re incapacitated, name a child guardian for emergencies and create trusts for your heirs.
That sounds like a lot and you may think you don’t have to do anything else with your estate plans once you’re done – but, you’re not. Estate planning is a life-long endeavor. Yet, many people create estate plans and shove them in a drawer to collect dust. As a result, their last wishes may not be entirely fulfilled.
An outdated estate plan can create issues for beneficiaries. For example, there may be new assets that aren’t included in an old estate plan. Or, a power of attorney may have passed away before a crucial point in a testator’s life.
That’s all to say, updating an estate plan can be just as important as making it in the first place. Now that you know that you can and should update an estate plan, when should you? Here’s what you may need to know:
When should you revise your estate plans?
When you should update your estate plan is an important question, but it doesn’t need to be complicated. Here are some reasons you should make estate plan changes:
- You married
- You divorced
- You had a child
- You had a grandchild
- An heir passed away
- You have a health scare
- You have new assets
While you could wait until one of the above events happens before you update your estate plans, you may want to consider making adjustments early. Many people wait until three years before they alter their estate plans.
Do you need legal assistance?
When making or updating an estate plan, it’s important to comply with state and federal law to ensure the best outcome for your loved ones.