Once you legally document your wishes, you may believe you are prepared for the unexpected. To a certain extent, that is true. However, your assets and desires may change over time.
Making necessary updates to your estate plan can make life easier for your loved ones, as well as yourself. Not every event requires revision, although defining moments may merit updating your documents to reflect your current preferences.
Consider your beneficiaries
A significant life change involving a loved one could prompt you to think about your asset designation. You probably want to avoid inadvertently excluding someone close to you. At the same time, there may be those you would rather not benefit from the fruits of your labor.
Generally speaking, you would be wise to review and update your estate plan after events such as a:
- Change in marital status
- Family member’s passing
- Transfer of real property
- Birth or adoption of a child or grandchild
- Significant increase in the value of your investment portfolio
Designating beneficiaries provides peace of mind, knowing that you will be able to provide for those you care about once you are gone. Yet, various external factors could also influence your future.
For example, the formation or dissolution of a business would likely alter your net worth considerably, and relocation would make updates necessary due to differences in state laws.
Naturally, it is challenging to think about the inevitable end of life. However, at some point, minimizing potential confusion and disputes among family members by keeping your affairs in order may be your last act of love.