We recently discussed how it is important to update your estate plan if you are going through a divorce. Marital changes are an important time to think about the future. Not only do you need to make updates when you are getting divorced, but you may also want to alter your estate plan if you are getting married initially or entering a second marriage. Anytime your romantic relationship changes, you need to think about how that can impact what happens to your assets if you pass away.
But marriage and divorce are certainly not the only times that these updates need to be made. Below, we will look at some more examples of times when it may be wise to update your existing plan.
Asset changes
For one thing, keep an eye on significant asset changes. An example could be receiving an inheritance from your parents, selling a business that you own, or seeing a significant increase to your own net worth. If you have been successful in your career and your asset level is now much higher than it was when you initially made your plan, updates are necessary.
Other family changes
You also want to think about any other changes to your family, besides marriage or divorce. This could include the birth of children or grandchildren, for example. You may also want to think about marital relationships, such as if one of your adult children gets married or divorced.
Health changes
Finally, your estate plan can address health conditions, often using a medical power of attorney or a living will. If you get a serious diagnosis or experience other health changes, you may want to update your estate plan to reflect your wishes.
Having an estate plan is important, and updating it periodically is crucial to make sure that it works for you and your family. Be sure you know what legal steps to take.