An estate plan is an essential tool that not only protects your assets but also safeguards the people you love. While making a plan is of the utmost importance, updating your plan is equally so. If you fail to review your plan on certain occasions, your final wishes might not be adhered to when it comes to settling your estate. That’s why Forbes recommends updating your plan after the following events.
You get divorced (or remarried)
After a major relationship change or the birth or adoption of a new child, updating wills and trusts is an absolute must. If you fail to look over your documents, you run the risk of an ex-spouse inheriting your assets, while your current spouse may be left out. If there is a new child in your family, you must also add him or her to your estate plan to ensure assets are distributed equitably. Estate issues can be quite trying for family to deal with after the death of a loved one, so ensuring your plan is correct before that happens can save a lot of heartaches.
You move to another state
Every state has different rules about estate planning. Accordingly, moving from one state to another could render your plan invalid from a legal perspective. Your estate may also be taxed at a higher level after a move, which should be addressed within the plan itself. In this case, it’s best to work with an attorney with knowledge of the laws in your current state of residence.
Your financial situation changes
A review of your plan is also necessary if your financial situation gets better or worse. A review should also occur if you sold off some assets or acquired others. Even if no changes have taken place, consider reviewing your estate plan every two years or so to ensure it’s still valid.