Ensuring your estate plan reflects your current circumstances is important for protecting your assets and loved ones.
Certain life events may signal it is time to review and update your estate plan.
1. Marriage or divorce
Marriage or divorce drastically alters your legal and financial obligations. After getting married, you may want to include your spouse in your estate plan, designating them as a beneficiary or executor. After a divorce, you may wish to remove your former spouse from your plan and update beneficiaries accordingly.
2. Birth or adoption of a child
The birth or adoption of a child is a joyous occasion that also necessitates careful estate planning. You will want to establish care for your child in the event of your passing. This may involve naming a guardian to care for them and establishing a trust to manage their inheritance until they reach adulthood.
3. Changes in health or disability
Changes in health or disability can impact your ability to manage your affairs and make decisions. If you or a loved one experiences declining health, it is important to review your estate plan to address potential incapacity. This may involve establishing powers of attorney to designate individuals to make financial and healthcare decisions on your behalf.
4. Significant changes in assets or finances
Significant changes in assets or finances warrant a thorough review of your estate plan. Whether you acquired new property, started a business or experienced a windfall, you want to ensure your plan reflects your current financial situation.
Life is full of changes, and your estate plan should adapt accordingly. Regularly reviewing and updating your estate plan is a wise decision that offers peace of mind for you and your family.