An estate plan is an essential tool for managing your assets and ensuring that you carry out your wishes after you pass away.
However, life is unpredictable, and circumstances can change over time. That is why it is crucial to review your estate plan periodically and make changes as necessary.
Changes in your family
One of the most common reasons to make changes to your estate plan is due to changes in your family situation. This can include getting married, having children or getting divorced. If you get married or have children, you may want to update your estate plan to include them as beneficiaries or to designate a guardian for your children. If you get divorced, you may want to remove your ex-spouse from your estate plan and update your beneficiaries accordingly.
Changes in your finances
Another reason to make changes to your estate plan is due to changes in your finances. This can include receiving a large inheritance, selling a significant asset or starting a new business. If you receive a large inheritance, you may want to update your estate plan to reflect your new wealth. If you sell a significant asset, you may want to update your beneficiaries or designate a new executor for your estate. If you start a new business, you may want to create a trust or update your estate plan to ensure that your successors manage the business properly after you pass away.
If you are unsure whether you need to make changes to your estate plan, it is a good idea to consult with a financial advisor or estate planning professional who can provide guidance and help you make informed decisions.