Many people believe the estate planning process is a one-time endeavor. However, estate planning is a life-long process. Testators have the opportunity to update their estate plan whenever they wish.
By updating your last wishes, you can protect your interests. Here is what you should know about updating your estate plan:
What are some common reasons to update your estate plan?
There are many reasons to update your estate plan. Like many people, you could update your estate plan regularly every three to five years. Within this time, you may have acquired new assets that can be itemized and distributed to beneficiaries.
Other reasons you may want to update your estate plan include:
- After you get married
- After a divorce
- After having a child
- After the birth of a grandchild
- After developing a health condition
- After having a health scare
- After state tax changes
You do not have to have a reason to update your estate plan. However, knowing why you need to change your estate plan can help you make decisive changes.
What changes should you make to your estate plan?
Adding assets to your estate plan may be the most common reason to alter your plans. However, there are a few other reasons to update an estate plan.
For example, you may wish to change your power of attorney after a divorce. You may wish to add a trust to your estate to avoid disputes and taxes. Or, you may want to include a living will to decide what would happen if you were to experience an end-of-life scenario.
You may want to talk to someone with extensive knowledge of estate planning before updating your will and trust so that your goals can be addressed and your needs properly met.
