Life events that mean it is time for an estate plan

When many people make an estate plan, they are often aware that they may need to update it over the course of their lives. They look for key life events that mean it is time to make a significant change.

But for those who do not have an estate plan yet, these life events can also signify that it may be time to get a plan in place. Let us look at a few important potential life events and why an estate plan could help.

The birth of a child

First and foremost, when parents have a new child, they may want to think about leaving assets to their child when they pass away. They also want to make important decisions like establishing a guardianship so that, if they pass away unexpectedly, someone is there to take care of and raise the child.

A serious medical diagnosis

A diagnosis involving a serious disease or ailment may also mean it is time to draft an estate plan. People often think about this after they have a medical emergency, like a heart attack or a stroke. They may also consider it after a diagnosis of cancer or Alzheimer’s.

Significant asset changes

Of course, a big part of estate planning is leaving assets to beneficiaries, so major changes to your assets may mean it is time to put a plan in place. For instance, perhaps you received a large inheritance from your own parents or you spent decades as a business owner and then made a lucrative deal to sell your company in your 50s or 60s.

These are just a few examples of reasons why you may want to draft an estate plan, so be sure you know exactly what legal steps to take.