California residents like you work hard to create your estate plan. But after you create it, what comes next? Many mistakenly believe creation is the first and only step. But you must keep your estate plan up to date your entire life.
Today, we will look at why it is important to keep your plan updated. We will also look at ways to tell if it is time to update your estate plan.
Changes in your life prompt estate plan changes
Forbes discusses potential signs that it is time to update your estate plan. This often revolves around changes in your life. After all, the purpose of an estate plan is to manage your assets and estate after you pass. You want information on your estate to be as accurate as possible. To do so, update your estate plan when significant life changes happen. This includes:
- Changes in family structure
- Changes in finances
- Changes in governing laws
- Changes in location
Family structure, finances and law
For family structure, this includes losing or gaining family members. You may lose a loved one who passes on or divorce a spouse. You may adopt or have a child, or marry someone. In any of these cases, ensure your assets go to who you want them to go to.
For finances, this includes any big positive or negative impacts. This can include bankruptcy or debt. It can include coming into an inheritance or other source of income. Ensure you have what you wish to bequeath.
Governing laws change all the time. Make sure that the laws are still in effect. Otherwise, you risk the court considering your plan outdated. Finally, changes in location means the governing laws change as well. Look up laws in any place you move to. Ensure your estate plan complies with them.