Creating a comprehensive estate plan takes a lot of consideration and time. But when it was complete, you probably felt relief knowing that your affairs were in order and your loved ones were provided for.
However, you can’t just put your estate plan in a safe place and forget about it. Your life goes through several changes; your estate plan should do the same.
Significant life events
Our life consists of thousands of small moments surrounding big events. Not every milestone requires a review of your estate plan, but here are some that do:
Wedding or divorce
The beginning and ending of a marriage are times when you will want to update your estate plan. When you get married, you want to ensure your spouse is included, which could include naming them as power of attorney, healthcare proxy and beneficiary.
Likewise, you will want to remove your ex-spouse from your plan if you divorce. If you don’t update your documents, your former partner may inherit some of your assets or receive the proceeds of a life insurance policy you forgot about.
Welcoming a new family member
The birth or adoption of a child is a cause for celebration. But it also means you have additional responsibilities. By updating your estate plan, you are ensuring that your child has financial security. You must also name a legal guardian to care for them if something happens to you.
Significant financial change
Buying a home, starting a business or receiving an inheritance should trigger a review of your estate plan. On the flip side, big financial losses can also have an impact.
Updating your estate plan shouldn’t be overwhelming. Scheduling regular reviews is the best way to ensure it still reflects your wishes.