Should you update your estate plan?

Are you a Michigan resident with an estate plan? When was the last time you looked it over? Writing your estate plan is the first step. It is an ongoing process to ensure this plan is up to date. 

Today we will look at some of the situations where people update their estate plan. Some of them may apply to you. If so, you may decide now is a good time for you to update your plan, too. 

Life changes that lead to estate plan edits 

Forbes looks at reasons people often update their estate plans. These reasons often involve major life changes. Three primary categories of change include finances, family and location. 

For finances, you do not want to give away something you do not have. You also do not want extra assets to go unclaimed. To avoid either possibility, update your will any time your finances change. This means updating it every time you come into a significant amount of money. It also means updating any time you lose money. 

Changing family dynamics and estate plans 

Family changes often involve marriage or divorce. If you divorce an ex-spouse, you likely no longer want them included in your will. If you marry someone, you may want to ensure they benefit from your estate in the event of your passing. Many people change their estate plan for dependents with developmental disorders. You may wish to set up a trust for them to ensure their care. 

For location, you may need to edit your estate plan if you move. All states handle estate plans in unique ways. In fact, some cities within a state handle them in different ways. If you move, double check the local laws. You do not want your legal documents deemed void because they do not abide by the law.