Massachusetts residents like you work hard on your estate in life. You spend time and care crafting your estate plan so your executor can handle your matters after your death. But creating an estate plan is not where your estate planning ends.
Your life is different from day to day. From one year to the next, many things may change. Because of this, your estate plan should change alongside it.
Updating your plan when your family situation changes
Forbes discusses times in your life where you may want to update your estate plan. First, experts suggest you review your estate plan every 3 years no matter what life changes happen. This allows you to refresh your memory on what you wrote and make any tweaks or changes you deem necessary in the moment.
Outside of that, you want to examine your estate plan for updates any time you go through a major life change. This is especially crucial when the changes involve your family or your assets. Examples of changes to family include:
- Divorcing a spouse
- Becoming estranged from a relative
- Adopting or having a child
- Marrying or remarrying
The impact of finances on your estate plan
Financial changes revolve around stark increases or decreases in your assets. For example, you want to update your plan if you come into a large inheritance. You also want to change it if you fall into debt and have to file for bankruptcy.
You also want to update your plan if you move to another state. In doing so, you fall under the jurisdiction of a new set of state laws. You want to ensure your estate plan will still hold valid under them.