When to Update Your Estate Plan
Creating an estate plan is the only way to guarantee that your loved ones receive the inheritance you wish to bequeath. You should not only create an estate plan, but you should also check it regularly to ensure it is up to date.
Marital Status Change
If you get married or divorced you should update your estate plan. Upon a divorce, it is essential to remove your ex-spouse from jointly titled property that remains in your possession. It is also important to remove your ex as beneficiary from any account that you do not wish him or her to receive.
This is to protect the inheritance of your children and your new spouse when you remarry. When you marry or when you remarry, you should update your estate plan to include your new spouse.
Beneficiary Change
When you become a parent, you must update your plan to include your children. Although your spouse and children are most likely your heirs at law, it is best to name them as beneficiaries through your Will or Trust so that you guarantee their inheritance and can state how much each person receives.
If a beneficiary passes away, you should update your Will or Trust and all financial beneficiary designations. If a deceased beneficiary is listed to inherit, there may be confuse during probate as a new beneficiary is chosen.
Asset Change
As soon as you buy or sell a piece of property, update your Will or other estate document to notate this change. Property that is left out of your Will must endure a lengthy probate to determine the correct heirs at law.
Estate Law Change
If there is a change in any federal or state law regarding inheritance and estates, you must update your plan to ensure it is still legally sound. Your attorney can advise you when a new law will affect your estate plan. If you do not update your plan, your document may encounter legal issues during probate.
