It is estimated that 58 percent of the baby boomer generation (those between the ages of 53 and 71) have an estate plan in place.
However, once created, many people do not realize that updates may be needed from time to time.
As a person ages and their situation changes, it may also be necessary to update their estate plan.
Do you know when it is time to make these changes?
If not, do not worry. You are not alone. You can learn when it is time to update these estate plans here.
Some Type of Major Life Event Occurs
Has some type of major life event occurred? Do you even know what this is? All of the following would be a major life event:
- Someone gets married
- Someone gets divorced
- Someone is born
- Someone dies
While the total list is much more extensive, this gives you a general idea of when you may need to update your estate plan. If you are not sure if what you have experienced is a major life event, then it may be a good idea to ask your attorney.
Your Financial Situation Has Changed
Regardless of if you have received some sort of windfall, received an increase in your pay, or have even lost your job, it is important to consider if the change is going to impact your estate plan.
Any significant financial gain or loss will likely require you to update your estate plan to reflect this change.
You Have Experienced a Significant Asset Change
If you move to another state, then it may be necessary to update the documents for your estate plan so you comply with the laws in that new state. It may also need to be changed so you can take advantage of any differences in the law.
If you own a business, a change in control or sale may affect your estate plan. If you currently sell real estate and move the proceeds into an investment account, then beneficiary designations may wind up impacting what passes through your estate.
While this is a short list, it gives you an idea of what to watch for. If you sell or purchase something of significant value, change the nature or status of an investment, updating your estate plan is a good idea.
It Has Been Over Five Years
Time can slip by pretty quickly. You may not even realize how much time has passed since you initially created your estate plan.
It is a good idea to review your plan regularly to ensure no changes need to be done.
Is it Time to Update Your Estate Plan?
If you are not sure whether or not it is time to update your estate plan, then it is a good idea to talk to an attorney. Keep this updated will help ensure that your wishes are adhered to after you pass away.
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