Once an estate plan is written, people are given peace of mind that their assets will be secure and their beneficiaries will get exactly what they need. However, an estate plan can’t be put on the shelf and forgotten. Like any living document, an estate plan should be reviewed on a semi-regular basis or at least every three to five years. More importantly, an estate plan should be revised and updated whenever a life-changing event occurs.
At Thornton Law Firm, we recommend that people review their estate plan at major life moments, such as marriage or large changes in assets, and then update their plan accordingly.
The three most common events in life when people update their estate plans are:
- When they get married or divorced. If you recently got married, make sure to include your new spouse in your estate plan. Additionally, update your will to remove previous spouses, if desired. If you’re in a domestic partnership, then it’s essential to include your partner in an estate plan so that they’re protected. Otherwise, they may not receive any assets by law if it’s not established in your will.
- When they have children. It’s important to update a will when a new baby arrives or when you adopt. Your children can inherit all or a percentage of your estate and that should be established in your estate plan. Stepchildren do not have inheritance rights, but they can receive them if the will gives them those rights.
- When there’s a death in the family. If a beneficiary passes away, update your will to add a different beneficiary or to recalculate a different percentage of the estate to surviving heirs.
Reviewing your plan every few years or updating it at major life changes will ensure that your estate, as well as your legacy, is passed down to your beneficiaries as smoothly as possible. If you think now is the right time to update your estate plan, contact us at Thornton Law Firm today.