How long has it been since you drafted your estate plan? If it has been more than three years, then it may be time to revise your will, trust and other legal documents. These changes can include adding new assets you want to distribute to beneficiaries.
However, you do not have to wait three years to alter your estate plan. You can make changes to your estate plan at any time. Here are some major life events that could inspire you to alter your estate plan:
Change in marital status
Many people look forward to the day they are married. If you recently got married, then it may be time to alter your estate plan to include your spouse in legal documents. You may consider naming your spouse as a primary beneficiary of your estate or power of attorney. Alternatively, you may need to remove your spouse from your estate plan if you have gone through a divorce.
New child or grandchild
If you recently gave birth, adopted a child or met your grandchild, it may be time to update your estate plan. You may need to include a child guardian in your estate plan to care for a child or adopted child if you suddenly pass away. Or, you can add a grandchild to your estate plan with the use of a generation-skipping trust, for example. A generation-skipping trust allows you to leave trust funds for a later generation.
Serious medical diagnosis
Major health scares can make you contemplate your life. You may want to consider adding a power of attorney and a living will to your estate plan if you have not already included them. These legal documents help manage your health care if you become incapacitated. Are you considering updating your estate plan? You may need to reach out for professional legal guidance.
