Life is fluid and full of changes. Your estate plan should reflect those changes.
Creating an estate plan is not a one-time task; it requires periodic updates to remain effective and relevant. What life events should trigger a review of your estate plan?
1. Marriage or divorce
Getting married or divorced significantly impacts your estate plan. Both likely involve changes to beneficiary designations, power of attorney, healthcare proxy and asset distribution.
2. Birth or adoption of a child
Welcoming a new member to your family is a time for joy and celebration. It also necessitates updates to your estate plan. You’ll want to designate guardians, set up trusts and ensure your child is provided for if something happens to you.
3. Death of a key person
If your executor, healthcare proxy or beneficiary named in your estate plan passes away, you will need to update your documents to reflect this loss, whether it be naming someone new to administer your estate or reallocating your assets.
4. Significant change in financial status
A substantial increase or decrease in your financial situation, such as receiving an inheritance, winning a lottery or selling your business, should prompt you to reassess and update your estate plan.
We also go through relationship changes. Someone you were once close to can become merely an acquaintance. If they are included in your estate plan, you may want to adjust your strategy accordingly.
If none of the above apply to you, it’s still essential that you review your estate plan on a periodic basis. Tax laws change regularly, and they can have a serious impact on your planning. If there are changes in federal or Nevada’s tax laws, you will want to ensure your estate plan remains tax-efficient.
Reviewing and updating your estate plan ensures your wishes are honored, even when they change. You will also have peace of mind knowing your loved ones are provided for.
