An estate plan can help determine how assets are distributed after a person passes away. One of the biggest mistakes people make when drafting an estate plan, however, is not keeping it updated and reflective of the changes in their lives.
Many people update their estate plan every three to five years. However, you do not have to wait that long to update your estate plan if something happens in your life that creates a significant difference. These include:
1. Changes in health
Have you been diagnosed with a serious or terminal medical condition? You may want to update your estate plan if there are changes to your health. You may need to draft an updated will that aligns with your wishes. Or, you may want to appoint a power of attorney.
2. Marital status change
Has your marital status changed? You may want to add a new spouse to your estate plan. You could name your spouse as a primary beneficiary of your estate or your power of attorney agent. You may want to remove a spouse from your estate plan after a divorce.
3. Birth or adoption
Did you have a new child or adopt a child? You can plan for your child’s future by adding them to your estate plan. You could create a trust to help fund your child’s future education or business.
4. Moving to another state
Have you recently moved to Washington? Each state has unique estate planning laws. You may need to update your estate plan to align with Washington estate planning laws.
5. Financial situation changes
Did you recently make a large investment or retire? Major changes to your finances could impact your beneficiaries’ inheritance.
You can reach out for professional legal guidance when making changes to your estate plan.