A common mistake you should avoid with estate planning is neglecting to revise your will and other important documents after important milestones in your life. Regular updates ensure that your estate reflects your intentions and provides for your loved ones.
You should consider reviewing your plans every few years to account for changing tax laws and other legislation. Here are three other situations that could impact your estate planning.
1. You move to a new state
Every state has its own laws regarding estate planning. Most states recognize validly created wills from other states, but there could still be complications. Differing laws could have an impact on many aspects of your plans including taxes, choice of executor and power of attorney.
2. You get married or divorced
After a change in your marital status, you may need to update your estate planning documents to best account for this change. If you are not married but want to provide for a partner, you will need to add that person as a beneficiary.
3. You have children or grandchildren
With the birth of a child, you will want your end-of-life documents to provide for your new loved one. You should appoint a guardian for your child and may want to include instructions should something happen to that guardian.
If you have grandchildren, you may decide to set aside a portion of your assets for your grandchildren to directly inherit.
In addition to updating your estate documents after major life events, you should also consider reviewing your plans after any significant shifts in your financial circumstances. A legal expert can revise your will to reflect these changes.
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