When was the last time you made your estate plan? While an estate plan doesn’t expire, it may be in desperate need of revisions. People often update their estate plans every three to five years to include new assets and beneficiaries.
However, you don’t need to update your estate plan just because you made an investment or want to include someone as a beneficiary. An estate plan can be updated for nearly any reason. You may find there are many reasons to update your estate plans with the following examples:
You’re getting married or divorced
It’s very common for people to include their spouse in their estate plans. Spouses may plan out their estates together because it’s often difficult to predict who will pass away first. As a testator plans their estate, they may need to consider what is owned individually and jointly. An estate plan that includes a spouse may also be necessary if a spouse is typically not financially involved.
Conversely, any decisions made during a divorce may need to be reversed after a divorce. It’s often necessary to destroy a previous estate plan so there is no confusion when the testator passes away.
You’re having a child or grandchild
It’s a special day when a child or grandchild is born. Parents and grandparents often need to make necessary changes to their estate plans for the sake of their children or grandchildren.
Parents may need to name a child guardian in their estate plan. A child guardian can take on the responsibility of raising a testator’s children if the testator passes away too soon. Grandparents may want to create a trust in their estate plans that help fund their grandchildren’s endeavors. For example, a grandchild may use trust funds for a college education or starting a business.
There are numerous other reasons to consider updating your estate plan. If it’s been a few years since you’ve reviewed yours, now is a good time to look at what you have in place and see if it still fits your needs.