Estate planning is an ongoing process that should evolve as your life changes. One of these changes is switching jobs, which often brings shifts in financial status and benefits.
This transition can affect various elements of your estate plan. Therefore, updating your estate plan when you change jobs is important.
Changes in financial status
Changing jobs often leads to a change in your financial status. You might be earning more or less than before, which can influence how you want to distribute your assets. It is important to reflect these changes in your estate plan.
Beneficiary designations
Many employment benefits like life insurance or retirement plans require you to name a beneficiary. When you switch jobs, review and update these designations in your estate plan to ensure they align with your current wishes.
Retirement plans
Your new job may offer different retirement plans than your previous one. You need to understand these new plans and adjust your estate plan accordingly. This will help ensure you maximize the benefits of your retirement accounts and minimize potential taxes.
New assets or liabilities
Your new job may come with additional perks such as stock options, bonuses or even liabilities like a relocation loan. You should include these in your estate plan as they can significantly impact your estate’s value.
Health insurance coverage
Your new job might come with different health insurance coverage, which could affect your healthcare directives and powers of attorney. Review these documents to ensure they align with your current coverage.
Changing jobs can be an exciting but challenging transition. Amidst the flurry of new responsibilities and opportunities, do not forget to update your estate plan. Keeping your estate plan current helps ensure that it accurately reflects your wishes and maximizes the benefit to your loved ones.