Circumstances may change in your life after drafting your estate plan, in which case, it will be outdated. Accordingly, you will need to review it and make the necessary changes.
This guide highlights six instances that may call for updating your estate plan:
A new child/grandchild
You should update your estate plan after the birth or adoption of a new child or grandchild. If you fail to do so, they won’t be among the beneficiaries, hence they may not receive any inheritance from the estate.
If you get a divorce, you may remove your ex-spouse from your estate plan. But if you want to keep them on as a beneficiary, you may do so. If you had appointed them to be the executor or power of attorney, consider naming another party.
If you get married or remarried, you should include your spouse’s name in your estate plan.
Sale/purchase of an asset
A change in your assets will have an impact on your estate plan. If you sell a property, you should remove it from your estate plan, as you no longer own it. And if you buy one, you will add it and state your wishes. If you don’t account for a new property, disputes may arise in the future among beneficiaries.
Major milestones in your children’s or grandchildren’s lives
When your child or grandchild reaches certain milestones, such as becoming an adult or buying a home, you may want to update your estate plan. For example, when your child turns 18, you may appoint them as your executor or power of attorney.
Change in laws
If state or federal laws affecting estate plans change, you should review yours.
Your estate plan should reflect your current intentions. With legal guidance, you can validate your changes.