An estate plan is a set of legal documents that outlines your wishes with respect to your assets, future and loved ones. But, creating an estate plan is just part of the process. Thanks to life changes, it is important that you review and update your estate plan to keep it in tandem with your wishes and existing laws.
A number of life changes can prompt a review and update your estate plan. Here are some of them:
Marriage or divorce
Both marriage and divorce change your legal status in a number of ways. And your marital status has a direct connection to your estate. Thus, if you marry, it is important that you add your new spouse to your estate plan. Most people give their spouses medical power of attorney. This is something you may want to consider when you get married.
Divorce too is an important life event that should trigger an immediate update on your estate plan. If you named your ex as a beneficiary of your estate, you might want to remove them from your potential heirs. Also, if you gave your ex a medical power of attorney, you should consider reviewing this.
Birth or death or a beneficiary
The birth of a child is another important life change that should necessitate an update to your estate plan. One of the estate planning tools you should consider setting up for your newborn is a living trust. It is also important that you nominate and include a guardian in your estate plan following the birth of your child.
And if your beneficiary dies, it is equally important that you update your estate plan.
An up-to-date estate plan gives you peace of mind knowing that your wishes will be honored when you are incapacitated or no longer around to make important decisions. Find out how a properly written estate plan can help you take care of your wishes.