Do you remember the last time you made your estate plan? It was likely a process you would never see yourself doing again. However, estate planning is a lifelong process that many people revisit several times over their lives.
Updating an estate plan is important for many reasons. Many people update their plans every three to five years to include new assets. An estate plan can be updated for many reasons. Here are some reasons you may need to update your estate plan:
Did you go through a divorce?
Many people find that it’s important to include their spouse in their estate plan. This may be done so that a spouse is the primary beneficiary of their estate or so that the spouse has the power of attorney if the testator suffers from an illness or injury. Many people decide to change their estate plans after a divorce to remove their spouse. But, some people forget to do this after being overwhelmed by the divorce process.
Did you recently have a child?
Parents want to do everything they can to give their children a successful future. This may mean saving for their education or investing in stocks. Another way parents can prepare for their children’s future is by altering their estate plans. An estate plan may be updated to, for example, include a trust that would help fund a child’s future. Or, a child guardian could be named in case both of a child’s parents passed away suddenly.
You don’t need a reason to update an estate plan, but it can help to know about your legal options and set goals before you do.