Having an estate plan is vital to ensuring that your wishes are carried out after you die. However, what many people don’t realize is that estate plans need to be updated regularly to reflect changes in life.
When you get married or divorced
Failing to update your estate plan after getting married or divorced can have major consequences. For example, if you die without a will, your spouse might not automatically inherit your property. However, if you have a will that names your spouse as a beneficiary, they will inherit your property. To address your spouse inheriting your assets, you should update your will after getting married or divorced.
When you have a child
If you have a child, you will need to add them to your estate plan. You can do that by creating a trust or adding them as a beneficiary to your will. Failing to do this could mean that your child does not inherit anything from you after you die.
When you move to a new state
If you move to a new state, you will need to update your estate plan. This is because each state has its own laws regarding wills, trusts and other estate planning documents. If you don’t update your estate plan, it might not be valid in your new state. For instance, if you move to Georgia and have a will that was created in California, the will might not be valid in Georgia.
When you experience other major life events
Major life events, such as buying a house or retiring, can also trigger the need to update your estate plan. This is because these events can change your financial situation and the distribution of your assets.
Estate planning is an important part of ensuring that your wishes get carried out after you die, and there are many reasons why you might need to update this document. When you have any major life changes, make sure to update your estate plan accordingly.