When is it time to update an estate plan?
Estate plans can be made to help instruct how a testator’s assets should be distributed. This way there’s no confusion as to how an estate should be handled after the testator’s passing. Furthermore, an estate plan can include several important details such as who would be named power of attorney if the testator suffered injuries and became incapacitated.
There’s a lot that people can do with an estate plan. However, after making an estate plan, many people forget they have them. As a result, many estate plans get outdated. This can create a lot of issues if assets aren’t accounted for.
There are many reasons you should update your estate plans. Here are a few situations that should always prompt a new look:
After marriage or divorce
Many people adjust their estate plans after marriage to include their spouses. Spouses are often named beneficiaries, for starters. Some people will even name their spouses as powers of attorney. Many of these same decisions are often redacted after a divorce.
After a child is born
Many parents want to ensure their children are well off and cared for if their parents suddenly pass away. A testator may set aside assets in a trust to help their children start a business or go through higher education. Or, they may name a child guardian to ensure their children are raised by someone trusted.
After an heir passes away
Many people eventually outlive one or more of their heirs. It can be unsettling to know this happens, but the deceased share of the inheritance may need to be reallocated. An updated estate plan can help ensure this.
After two to three years
It’s typical for people to need to update their estate plans after several years. People may need to consider updating their plans after two to three years to include new assets and changes.
If it’s time for you to update your estate plans, then you may need to reach out for legal help when considering your options.