One thing you can do to give a sense of security and instruction to your family is to write an estate plan. When you pass away, if there is an estate plan, it lowers the odds of disputes between your family members. It can also give them peace of mind because your estate plan may address big questions that they have, such as how to divide family heirlooms or how to make medical decisions if you become incapacitated.
But one thing to remember about estate planning is that you likely need to make updates and alterations as things change. Say that you’re 40 years old with two children when you write a will, but you don’t pass away until you’re in your 70s. There may have been significant changes to your life, and any estate planning that you did at 40 will be extremely outdated.
When should you make updates?
To determine when to make an update, it can be wise to conduct an estate plan review. You may simply want to look back over the details of that plan on an annual basis. Another tactic is to conduct these reviews when there are major changes, such as:
- Buying or selling a business
- Buying or selling a home
- Getting a serious medical diagnosis, such as Alzheimer’s or cancer
- The birth of more beneficiaries who need to be included, such as children or grandchildren
- Getting married or getting divorced
- The death of beneficiaries who were previously listed in the estate plan
Having a will and an estate plan can be very helpful for your family, but only if it’s up-to-date. Be sure you know exactly what legal steps you’ll need to take.