Your estate plan gives you and your loved ones peace of mind, both while you’re living and after your passing. So, once you create an estate plan, you’ll feel better about anything the future could bring.
But even though you have an estate plan you’re comfortable with, it doesn’t necessarily mean it will remain the same for the rest of your life. In fact, there’s a very good chance that your estate plan will require some modifications every now and again.
Here are some of the top reasons to review your estate plan and consider the need for changes:
- Marriage or divorce: If your marital status changes, your estate plan should follow suit. For example, after you tie the knot, you may want to alter your estate plan to ensure that your new spouse receives your assets upon your death.
- An addition to your family: Childbirth and adoption will both impact your estate plan and future. If you bring a new child into your family, consider the changes you need to make, such as naming a guardian. Also, estate planning for your pets may be important to you, so consider this if you bring an animal into your home.
- Death of a loved one: This doesn’t always result in estate plan modifications, but it could. For instance, if your spouse passes on and they were named as your sole beneficiary, you should adjust this immediately. If you don’t, the court will step in and decide what happens to your estate upon your death.
- Substantial increase in your net worth: If you gain wealth, regardless of the reason, it could change the way you live and what you want to do with your estate upon your death. This should prompt you to review your estate plan for potential changes.
Along with the above, the passage of time alone is reason enough to review your estate plan for potential changes. Get into the habit of doing this once a year or every other year.
If you find that your estate plan requires changes, consider your options and then take immediate action. This will once again put your mind at ease.