An estate plan is a set of legal documents that outline how you want your loved ones to distribute your assets after you pass away.
However, life is full of changes, and it is important to update your estate plan regularly to ensure it reflects your current wishes. Here are three reasons to update your estate plan:
1. Changes in family situation
One of the most common reasons to update your estate plan is a change in your family situation. This could include the birth or adoption of a child, a divorce, a marriage or the death of a family member. These changes can have a significant impact on your estate plan and may require changes to your will or other documents.
2. Changes in financial situation
Another reason to update your estate plan is a change in your financial situation. This could include a significant increase or decrease in your assets, a change in your investment strategy or the purchase or sale of a property. Changes to your financial situation can impact how you want the executor of your estate to distribute your assets and may require changes to your estate plan.
3. Changes in health status
Your health status can also impact your estate plan. If you experience a significant change in your health, you may need to update your estate plan to reflect your current wishes. This could include changes to your power of attorney or living will, which outline your wishes for medical care if you are unable to make decisions for yourself.
By updating your estate plan regularly, you can ensure your estate plan is up-to-date and reflects your current wishes.