Your estate plan protects the assets you worked so hard to acquire during your life. It also ensures that your family receives the proper support after you are gone, which will help them cover essential living expenses.
In addition to creating a will, you must also update your estate plan as needed. Here are a few instances that necessitate a review of your will.
You receive a large sum of money
Your will only covers the assets listed within. If you fail to list assets, the court will decide how to disperse them after you are gone. As a result, any significant changes to your financial outlook require an update. This includes lottery winnings, substantial work bonuses, personal injury settlements, and all other sources of money.
Your first choice for executor is not available
The executor of your will has numerous responsibilities. They must locate all your assets, pay off creditors, and disperse money to your heirs according to your wishes. Some people become unavailable due to changes in their family or work obligations, while others may move away and lack access to your estate. In this case, you must update the executor or name a contingency candidate in the event the first person cannot fulfill the role.
Your marital or family status changes
Virtually every estate planner names their spouse and/or children within their will. This is especially important when it comes to naming a guardian to take care of minor children in case the unthinkable happens. Any changes in your family life require an updated will, including divorces.
Incremental reviews are always beneficial, even if you do not experience major life changes. Accordingly, consider conducting a review of your full estate plan every three years or so.