Washington residents often think that creating an estate plan is all you need to do. Unfortunately, that is not the case. An estate plan needs to reflect your life in an accurate way. Because of that, you will come across times when you need to change your estate plan.
Today, we will look at some of the most common times people change their estate plans. Though this varies from person to person, there are still some similarities.
Family matters and estate plan changes
Forbes discusses reasons people often have for modifying their estate plan. Most revolve around major life changes. Today we will focus on changes to family and changes to finances. Changes to family include any alteration to a family structure. These changes matter because estate plans determine where your assets go. Do you want an estranged ex-spouse to get any of your assets? The answer is probably “no”.
Likewise, let us say a new child enters the home. You want to make sure to include them. You can give financial support to spouses. You can also do this for adult children who need care.
Changing estate plans because of finances
Of course, you want to make sure that the assets you allocate are up to date, too. Financial situations change for many reasons. They can change for the better or worse. You may lose money and have to file for bankruptcy. You may face debt. But you may come into money. You may win a large cash prize or come into an inheritance. Whatever the case, you want your estate plan to reflect your current finances. This way, everyone gets what you want them to.