Whether you’ve had an estate plan for years or only recently set one up, it’s essential to update your estate plan from time to time. So when should you update your estate plan? That answer depends on your unique circumstances. However, most financial experts recommend that you review and revise your estate plan every three to five years or after you’ve undergone a significant life event. Here’s a closer look at circumstances that may warrant an update to your estate plan:
A change in your marital status is the ideal time to review your estate plan. If you get married, you may want to add your new spouse to specific estate planning documents. On the flip side, if you divorced, you might want to remove your former partner from your estate plan.
Birth of a child
It’s essential to protect your children when something unfortunate happens to you or your child’s other parent. That’s why the birth of a child usually requires an update to your estate plan. You can also use the opportunity of updating your estate plan to name a guardian for your child.
Major financial changes
Maybe you purchased a home, or perhaps you made a considerable investment or became a business owner. If there has been a substantial change to your finances, you must update your estate plan to reflect your and your family’s new needs.
A geographic move
Estate planning laws may vary from state to state. While some differences are slight, others are significant and warrant changes. Things related to powers of attorney, advance medical directives, and living wills. If you move to another state or acquire a second residence there, it’s in your best interest to meet with a legal professional to learn how your new state’s estate laws impact your situation.
Significant health changes
An estate plan is designed to protect your health, well-being, and finances. If you or a loved one experience a substantial change in health, it’s essential to revise your estate plan. For example, if your power of attorney is a spouse whose health now prevents them from taking on the role, you may want to consider changing to someone else.
Consult a financial professional
A financial professional can help you with your ever-evolving estate planning needs by reviewing your financial situation and determining the ideal strategy for your unique situation.
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