If you have an estate plan, you have taken a giant step in the right direction to protect your assets and provide for future generations. However, as life’s circumstances ebb and flow, so should your plan.
Here are four situations that may warrant an update to your estate plan.
1. You want to add or remove beneficiaries
You may want to include new additions to the family, such as children, grandchildren and spouses in your list of beneficiaries. Likewise, if current beneficiaries leave the picture through divorce, death or parting ways, you may want to remove their beneficiary status.
2. You need to change an executor or trustee
If your current will executor or trust trustee becomes ill, passes away or is otherwise unfit to manage your estate, you should find someone suitable to fill the role and adjust your legal documents accordingly.
3. You are moving to a new state
Moving to a new state warrants an update to your estate plan because some laws apply only to a specific state, which can complicate your current plans. Additionally, if you sold a home in your old state, a new estate plan should reflect this asset change.
4. Your assets and liabilities change
Because an estate plan allocates where your assets go, you must update it if your assets or liabilities increase or decrease. For example, if you inherit a house but do not update your estate plan, the property may have to go through a probate process.
An estate plan is a wonderful way to make sure your assets end up in the right hands. However, for it to be effective, you should update it if any of these situations arise.