Did you know that your estate plan could be outdated? An outdated estate plan doesn’t always mean it can’t be used, but it can create many difficulties for your beneficiaries, such as the wrong beneficiary gaining assets from your estate.
You can update your estate plans every three to five years to avoid issues. But, there may be reasons to update your estate plans earlier. Here’s why:
You recently got married
If you recently married, it may be important to you and your spouse to include your spouse in your estate plan. For starters, you may name your spouse as a beneficiary, which can help separate assets your spouse would gain from others.
You may also wish to name your spouse as a power of attorney. As your power of attorney, your spouse may be able to make financial and medical decisions on your behalf if you become incapacitated.
You may also wish to name your spouse as a child guardian to a child you had in a previous relationship. Your spouse could have the same legal rights you would over your child if you suddenly passed away.
You recently got divorced
Keeping an ex-spouse in your estate plan can create issues. For example, if you no longer have a good relationship with your ex-spouse, they may not have your best interests as your power of attorney. You may also wish to assign assets in your estate plan so that they are no longer a beneficiary.
You recently had a child
As a parent, you may wish to alter your estate plans so that your child’s future is protected. You may name a child guardian in your estate plan if you fear you may unexpectedly pass away. A child guardian could have the legal ability to raise your child in your place.
Your beneficiary recently passed away
It’s possible that you might outlive a beneficiary. You may need to alter your estate plan so that the assets the deceased beneficiary would gain go to someone else. You could also name a secondary beneficiary who would benefit from an estate if a primary beneficiary passed away.
Keeping your estate plans regularly updated can be difficult. You may consider reaching out for legal help when it’s time to make a new estate plan.