Having an estate plan is something that everyone needs, no matter their age or social status. Sometimes we forget that an estate plans need to be updated and revised several times during one’s lifetime. I usually recommend that you review your estate plan once a year to see if updates should be made.
There are also significant life events that prompt review of an estate plan which include:
- Marriage/Birth of a child/adopted a child. When there is an addition to the family, whether it be a spouse, child or grandchild, it is best to revise the documents so he/she is named and specifically included if you wish for he/she to be a beneficiary.
- Move to another state. Each state has its own estate planning laws and some still have inheritance or estate taxes. Check with an attorney in the state to which you move to see if it’s laws may be different from where you previously lived. You should also work with your estate planner to establish proof that you have changed residence.
- Divorce/Death/Change in objects of your affection. Sometimes it is appropriate to delete someone who was formerly included in your estate plan. Death or divorce are the main reasons for having to remove someone, but you may also want to disinherit someone who is estranged from the family or has been irresponsible with money.
- Change in assets/liabilities. A significant change in the value of your estate should prompt an update to your estate plan. This statement is true whether the value has increased or decreased. We all have financial windfalls or setbacks from time to time, so you want to ensure that you keep your estate plan up to date with your current financial situation.
Don’t just put your estate plan away to be forgotten about. Make a habit of keeping it up to date. This will guarantee that your final wishes are granted and help prevent the conflict of family having to make these decisions for you. Contact Thornton Law Firm for any of your estate planning needs.