Estate planning is a crucial aspect of anyone’s life. Even if you’re not a high-net-worth individual, creating an estate plan can benefit your family in various ways. It can ensure they receive your assets to secure their financial future or a special family heirloom to continue passing on to other generations.
However, executing an estate plan doesn’t end after you sign on the dotted line. You should update your will and other legal documents regularly. Adding a new beneficiary after the birth of a child or removing your former spouse as your power of attorney after getting divorced may be necessary as time passes.
Typically, an estate plan should be modified whenever there’s a major life event or significant change in circumstances. That means amending specific documents, such as a will, to reflect your current wishes. Whether you suffer a serious medical condition, discover changes in tax laws, or welcome a new child into the family, reviewing and updating your will is vital.
These are the top reasons you should update your will.
Your Family Has Changed
Your family might have significantly changed since you created your original will. You, your spouse, or your child’s health could make you rethink how you structured your will. You might wonder if the provisions you included are enough to protect you and your immediate family.
Additionally, new family members, including children and grandchildren, could make you want to reconsider who you leave your assets to upon your death. Instead of giving everything to your spouse or a parent, you might also decide to leave something to your kids or grandkids.
Updating guardians for minor children is also an excellent idea as your family grows. Likewise, plans should be created for how the guardian should use any assets left behind to pay for necessary expenses, such as housing, food, education, and medical bills.
Your Relationships Have Changed
Sometimes, changes in family members aren’t the only reasons to amend your will. There might not be new additions to the family or the death of a person you had named as a beneficiary, but your relationships with your relatives could change or evolve.
You might find yourself growing closer to a distant relative and want to ensure their financial future once you’re gone. You could add them to your will so that they receive a portion of your estate. You could also change your will if you drift apart from someone you used to be close to and decide you don’t want anything to transfer to them when you die.
Your Assets Have Changed
Many people gain and lose assets over their lifetime. You might experience a sudden increase in your net worth or a significant loss of assets. You must consider how you want to distribute your estate when that happens.
You could determine that allocating your assets equally among your children makes the most sense if you receive an inheritance or your new business becomes successful. Updating your will as to beneficiaries who would receive family heirlooms or personal belongings of sentimental value might be necessary if you face financial strain and lose assets you had originally planned to leave to your heirs.
Estate or Tax Laws Have Changed
State and federal tax laws change constantly. You should pay attention to these laws and watch for anything that could impact your estate. It might be beneficial to update your will so your beneficiaries can avoid particular tax consequences.
Speak to a Brandon Estate Planning Attorney Today
Whether you want to make a few changes or completely rewrite your will, you should hire an experienced Brandon estate planning attorney. Attempting to draft a new estate plan without legal counsel could be detrimental to your family. Any error you make could create disputes among surviving family members and allow someone to challenge the validity of your will. Your loved ones could face months or years of litigation before they can administer your estate and receive the assets that are rightfully theirs.
If you want to discuss your options for modifying your current will or other documents in your estate plan, call our Brandon estate planning law firm today at (813) 438-8503 to schedule a consultation.