Estate planning is all about managing what happens to your personal items and your wishes after you die. However, just setting it up once is not enough.
Figuring out when to make updates can make sure your wishes stay up-to-date no matter what life events you go through.
Marriage
When you get married, it can impact every part of your life. This includes your financial plans. Entering into this relationship might mean you want to share your assets with your new spouse or give them power to make healthcare decisions for you in certain circumstances.
New children
The birth or adoption of a child is a joyous occasion, but it also means you need to update your estate plan. You may want to establish guardianship for your children to ensure these young ones stay with an adult they know in the event of your death. Additionally, you may need to adjust your beneficiaries and inheritance plans to include your new child or children.
Income differences
If you suddenly come into a lot of money or start a business, you should change your estate plan. Big changes in your finances mean you may rethink who gets what to make sure everything is fair when you die.
Different state residence
Moving to a new state can mess with your estate plan because each state has different rules about what is legal when it comes to probate. If you move, it is a good idea to check if your plan still works or if you need to make some changes to follow the rules in your new place of residence.
Health issues
Changes in your health status, such as a diagnosis of a serious illness or disability, may prompt updates to your estate plan. You may need to designate a healthcare proxy, establish a living will or create a special needs trust to address your evolving healthcare needs.
By being proactive when it comes to estate planning, you can provide peace of mind for yourself and your loved ones during tough times ahead.