After California residents create an estate plan, what is next? Some people may erroneously believe that is all there is to it. But an estate plan should evolve to suit your life as it changes.
Today we will answer the question of whether you should update your estate plan. We will look at some of the most common times other people update theirs. This may give you a better idea of when to update yours, too.
Life changes when making estate plans
Forbes has a list of reasons when it is time to update an estate plan. Speaking in general terms, these reasons revolve around life changes. No one can predict how life will go. For this reason, you can edit estate plans as your life progresses.
A primary reason for updates involve changes to family dynamic. This includes adoption or childbirth, marriage and divorce. If a child enters your family, you likely want to include them in your estate plan. The same goes for a new spouse. If an ex-spouse leaves the family, you may not want them to get any of your assets, either.
Finances and your estate plan
Financial changes may need an update, too. For example, let us say you discover that a dependent has a disability. This disability disallows them from caring for themselves. You may want to set up a trust to ensure they get care after your passing. If you gain or lose significant amounts of money, you want your plan to reflect that, too.
But you do not need to wait until any of these things happen to update your plan. You should understand that you have the power to change it for any reason at any time.