Planning for the future is a responsible task that often involves creating a will and establishing an estate plan. However, life is dynamic and circumstances change.
To ensure that other people know your real wishes, it is important to revisit and update your will and estate plan periodically.
Life milestones
Life is a journey marked by significant milestones. These may include marriage, the birth of children or the acquisition of substantial assets. These moments can reshape the landscape of your life and impact your financial and familial responsibilities.
When such events occur, it is time to reassess your will and estate plan. Updating these documents ensures that they align with your current situation and reflect your evolving priorities.
New family dynamics
Families, like individuals, evolve over time. Children grow up, relationships change and new family members may enter the picture through marriage or adoption. These shifts can have profound implications for your estate plan.
To safeguard the well-being of your family, it is important to update your will to account for any changes in the number of beneficiaries or alterations in familial relationships.
Financial adjustments
In the second quarter of 2023, credit card debt reached an average of $5,947 per American with a card. Depending on the economy and many other factors, financial circumstances are subject to fluctuations like additional debt.
Whether it is an increase in wealth, changes in investments or fluctuations in property values, your financial status can significantly impact your estate plan. Regularly reviewing and updating your will allows you to reflect your current financial situation accurately.
Health considerations
Health is unpredictable, and it is wise to consider the potential impact of health changes on your estate plan. If you or a loved one experiences a diagnosis or needs long-term care, it may be important to update your will to address healthcare decisions, appoint guardians or adjust the distribution of assets to meet potential medical expenses.
While there are specific triggers that signal the need for a will and estate plan update, it is also smart to conduct routine check-ins. Regular maintenance provides peace of mind, knowing that your estate plan is a solid reflection of your values.