Creating an estate plan can take a lot of work. Despite all the effort you went through to determine your beneficiaries, name guardians, appoint a power of attorney, and even create trusts, that is not the end of the work that you need to do.
Many life events can call for you to update your will. Here are a few common examples of when someone should update their estate plan:
Marriage or divorce
The beginning or end of a marriage can call for you to either update a will to protect your current beneficiaries or add new ones. Your assets may go to your ex-spouse instead of your children or new spouse without updating your will.
Birth or adoption
Adding a new member to your family creates an opportunity for you to update your estate plan. Make sure you have someone to look after your children after your passing, and you allocate your funds to support them at the same time.
Job loss or career change
Losing substantial income can call for you to make some serious changes. Selling major assets means that your will needs to reflect the asset changes. Alternatively, gaining a substantial increase in income can mean that you obtain new assets like a second home or car. You should be sure that your new assets are a part of your estate plan.
Do not wait to make necessary changes
Even if you did not experience major changes in your life, take some time to review your will and make sure that your past wishes reflect your current wishes. When people let their will fall behind in their lives, their friends and family may wind up fighting over major assets. By taking some extra effort today, you can make sure that your loved ones receive the inheritance you want them to earn.