Most of us are aware that creating an estate plan as soon as possible is important to ensure that all matters relating to your estate are properly handled when you pass away. Your estate plan can address many issues including from the distribution of assets to beneficiaries to the appointment of a guardian for your child through various essential documents, including:
- Last will and testament
- Powers of attorney (medical, financial, durable)
- Revocable living trust
- Advance healthcare directives
- Beneficiary designations
- Letter of intent
Updating an estate plan
Creating an estate plan is obviously important, but it is just as important to continue to update your plan as the years go by. Generally, estate planning experts advise revisiting your estate plan every three to five years or anytime you experience a major life change. The following are some examples of life events that may warrant a change to your estate plan:
- Illness or disability
- Death of beneficiary or spouse
- Divorce
- Marriage
- Birth or adoption of child/grandchild
- Purchase of large asset (e.g., house)
- Change in value of estate
- Change in relationship with beneficiary
- Relocating to another state
- Change in state and/or federal laws
- Increase or decrease in income
- Opening or selling a business
Your estate plan should change along with you. An outdated estate plan may fail to help you accomplish your goals and end up costing you and your family. An attorney in your area can review your estate plan and ensure that your plan continues to meet your needs no matter what life brings.
