Estate planning helps people organize what happens when they pass away. Their assets may be distributed to heirs and funeral arrangements may be made. The testator can even make plans for their underage children to be cared for by a trusted guardian and a power of attorney could have been named.
It’s generally believed that estate plans should be updated every two to three years. This way new assets can be accounted for. But, there are a few times when an estate plan needs to be updated. Here’s what you should know:
You married or had a divorce
One of the first things people do after they get married is alter their estate plans. This way their estate plans reflect their commitment to their spouse by giving assets to them. Their spouse may even be named as a power of attorney for emergencies.
People may also need to amend their estate plans after a divorce to remove their ex-spouse from any estate matters.
You had a child or grandchild
People often want to be sure that their children are taken care of if there are any issues, such as if the parents suffered a fatal accident. Parents can name a child guardian or set aside assets for their child. You may consider making a trust dedicated to your child’s future.
Maybe you already have children and don’t have any plans for more. Your children may have children who could also inherit from your estate.
Understanding your estate planning options
When it’s time to update an estate plan, it may help to review your legal options. You may find that more options can be included in your estate plans.