Preparation is essential if you want to be ready for whatever life throws your way, but it is also important if you want to take care of your loved ones after your pass.
If you are like many other people, you may think that simply creating a will is enough. However, you should update your estate plans regularly to ensure that they accurately reflect your intentions and account for changes in your life.
Here are some common scenarios that necessitate a review of your estate plans.
Changes to your family
You will want to take another look at your end-of-life arrangements when your family grows bigger or smaller. When you get married or divorced, for example, you may want to add or remove your spouse as a beneficiary in your will or retirement accounts. You will also want to consider how to provide for any children. It is important to determine preferred guardianship in your estate plans.
Changes in your address
Because individual states determine their own inheritance laws, a move to a different state could have a big impact on your estate plans. Make sure to review the laws of your new residence.
Changes in your financial circumstances
Whether your income grows, you receive an inheritance or you accumulate new property, you need to address any shift in your financial situation in your plans. One matter to carefully consider is the tax implications of a growing or shrinking estate.
Even when your life does not undergo any major changes, you should still update your estate documents every few years. Evolving state and federal laws could impact your plans.