There are many misconceptions about estate planning. Some people believe that it only applies to elderly people or those who have fallen ill. Thus, nearly two-thirds of Americans have no estate plan.
If you’ve taken steps to address your estate, this is positive. However, your estate plan needs to reflect your current wishes. Something that you drafted years ago probably doesn’t reflect your current circumstances.
Outlined below are examples of reasons why you should update your estate plan.
A change in family circumstances
Whatever stage of life you find yourself in, your family circumstances can change. You may have a child or grandchild, someone in your family may pass away or you may marry or divorce. All of these things are reason to at least review your current estate plan.
A change in your financial situation
Your estate plan should also adapt to any significant changes in your financial circumstances. For instance, you may have earned a higher income in recent years and been able to put away some savings. Perhaps you purchased a second home for the family to use for vacations.
If such changes are not accounted for in your estate plan, you could run the risk of those closest to you not being able to enjoy the benefits of all your hard work.
Drafting an estate plan is not a one-and-done event, it should be updated at regular intervals to reflect your circumstances. There are numerous tools at your disposal to make this happen. Seeking legal guidance will give you a better idea of the methods that are in your best interests.