Estate planning is essential as it ensures that after someone dies, their property goes to the intended beneficiaries. Unfortunately, most people view estate planning as a one-time thing.
However, it is essential to update your estate plan regularly. There are critical events and changes that occur now and then that may impact an estate plan. You may want to update your estate plan if:
- You move to another state
- You just got another child or grandchild
- Your assets have changed
- You got married or have remarried
- You got divorced
- Your spouse passed on
As you evolve with life changes, so should your estate plan. Failing to update your estate plan may have some consequences. Below are some of the consequences of having an outdated estate plan:
Eliminating conflicts before they arise is one important reason to update your estate plan. For example, family members may conflict over who will take custody if your estate plan does not include a guardian for your minor kids.
Your assets may not be distributed as per your wishes
It is vital to constantly update your estate plan to ensure it reflects your current wishes and the current state of your assets. This will ensure that your assets are distributed as you intend and eliminate those you no longer want to leave an inheritance.
Family members can miss out on their rightful inheritance
Change is inevitable. Over time, many things can happen, like having children, getting a divorce and remarrying. Therefore, not updating the estate plan according to your current situation may result in some family members missing out on their rightful inheritance.
Changes in your family assets, the law and other important things to you may have a bearing on your estate plan’s effectiveness. Therefore, regularly updating your plan will ensure your plan meets your intended goals.