You should not consider estate planning a task that you can complete and never think about it again. It is better to have an estate plan than not to have one, but that document may still need to be updated, even after it is made.
Failing to do this can mean that your estate plan no longer reflects the realities of your life or your family’s needs after you pass away. Here are three important reasons to update that plan.
Your marital situation changes
If you are married, you may get divorced and need to remove your ex from the estate plan. If you are single, you may get married and want to add your new spouse or their children into your estate plan. Either way, this is a major change in your life that needs to be reflected.
A new heir is born
This could refer to the birth of one of your own children if you have done your estate planning early on in life, as is recommended. However, even if you are a grandparent, the birth of a new grandchild may also mean that you need to change your plan to allocate some of your assets to that heir.
Your financial situation changes
Major changes to your financial situation may also necessitate an update to the plan. One example could be if you sell a business or lose a major asset. But it could also be a positive. If you see significant financial gains or some sort of windfall, you also want to change your plan to reflect this new wealth.
It is very important to have the right plan for your family, so always be sure you know exactly what steps to take.