Many people create an estate plan when they are hired for their first job. Others wait until they have their first child. Some wait until they are about to retire. Then, some people die without having an estate plan in place, leaving their family to fight with the state and the courts for assets. Today, we will examine the important life events that trigger an estate plan review.
First and foremost, it is in your best interest to create an estate plan once you reach adulthood, even if you barely have anything to your name. You can then begin the review process from there.
The first time you should review the estate plan is when you get married. You will need to rework the wording and include your new spouse. The two of you will become beneficiaries for each other.
The next time you need to review and update the estate plan is the birth of your first child. Update the plan with each subsequent child born into your marriage or if you adopt any children.
Did you get divorced? Your estate plan should be reviewed and updated immediately. You will want to have your spouse’s name removed from all of the documents.
An estate plan should be reviewed and updated when your children reach adulthood, when you become a grandparent and when your grandchildren reach adulthood.
Did you get remarried? It’s time once again to review and update the estate plan in place.
An estate plan review is important at various stages of life so you are comfortable with what is in place. Be sure you update your estate plan with each of the major life events listed in today’s post. If you don’t, your wishes might not be recognized at the time of your death.