Estate Planning is the process of working with an attorney to create a legally-binding plan for what will happen to your belongings and property (known as your estate) and your remaining money (known as your assets) after you pass away. If you don’t create an Estate Plan, these decisions are made by a Judge in probate court, not by your family or loved ones.
Estate Planning encompasses a lot of different methods, including Wills and Trusts. However, once you make your Estate Plan, it is not always wise to leave it set in stone forever. Since your Estate Plan reflects your life and wishes as they currently are, shouldn’t it change when your life and wishes change too? Here are 5 situations when you need to update your Estate Plan as soon as you can:
When You Get Divorced
You might think that it is common sense that when you get divorced from someone, you no longer want them to inherit everything you own when you die. Unfortunately, the law is not common sense. If you have recently gotten a divorce, your ex-spouse will remain in your Estate Plan until you update it yourself.
When You Move To Another State
Since every state has different laws for probate court, every state has different approaches to Estate Planning. If you made your Estate Plan in Virginia and you just moved to New Jersey, you need to update it to make it valid in your new home state.
When You Have a New Child
When a new child joins your family, you’ll want to include them in your Estate Plan. Whether it’s through birth, marriage, or adoption, a new child means updating your Estate Plan. This is particularly important for step-children in blended families, who might be excluded from your estate in probate court without including them in your Estate Plan.
When Your Financial Situation Changes
If you recently lost your job, your assets probably look very different than they did before – so it might be time to update them in your Estate Plan. Similarly, if you get a promotion, you might be able to include more in your Estate Plan than you previously could. Your Estate Plan reflects your financial life, which can change all too frequently at the moment.
How To Update Your Estate Plan
Your Estate Plan is legally valid once you create it – and it doesn’t change on its own. If any of these situations have happened to you, you want to update your Estate Plan as soon as possible. To get all the Estate Planning help you need, contact Dublin Packard today! We provide family Estate Planning for the modern family.
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Todd Murphy
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- Should I put my house in a trust? - July 26, 2023
