Life can change quickly. One day, you are engaged to be married. Then, before you know it, you have three children and another on the way. Life events, changes in your financial situation and new laws all play a role in determining when you should review your estate plan.
While it is generally advisable to review your estate plan at least every three years, certain life and family changes require immediate adjustments. Any time you experience a major life change or milestone, you should update your estate plan. This includes, but is not limited to, the following.
Your marital status changes
Before you tie the knot, think about making your spouse a beneficiary in your will or trust and perhaps a health care proxy. If you are getting a divorce, it’s important to take your soon-to-be-ex spouse out of any positions of authority they may have had, such as trustee or executor.
Your family grows
It’s important to revise your estate plan when children are born or adopted into your family. Appointing guardians for your minor children in your will can help ensure their well-being if the unthinkable should happen to you and your spouse. These should be close friends or family who you trust to love and care for your children in your absence.
You relocate to another state
Each state has its own laws regarding marital property, trusts, real estate, inheritance, and estate taxes. If you move to another state, you should familiarize yourself with the laws and revise your estate plan accordingly.
You may also need to update your plan if you purchase or inherit property or other valuable assets. This includes vacation property or large recreational items such as a boat or plane.
When you are ready to update your estate plan, seek legal guidance to help ensure that your wishes will be honored when the time comes.
