New York residents like you create an estate plan. Then what? You may think just creating the plan is enough. But in reality, you need to keep your plan updated constantly. It must reflect your life in the most accurate way at any stage in it.
To do this, you need to keep your plan changing to suit the times. Sometimes, this means changing your plan when major life occurrences happen.
Updating your plan often
Forbes looks into reasons for updating your estate plan. First, experts suggest that you update your plan every 3 to 5 years anyway. Life changes constantly, in big and small ways. Over the years, you may lose track of exactly how much changes. Looking over your estate plan helps you refresh your memory. You can choose whether certain pieces still fit you or if you want to change them.
Which major life changes affect your plan the most?
Otherwise, major life changes will act as the catalyst for any major estate plan changes. This primarily revolves around family and financial changes. For example, if you divorce someone, you likely do not want to give them a share of your assets. If you marry someone, you want to include them in your estate. The same goes for children who are born or adopted.
Financial changes can come in positive or negative form. For example, you may fall into debt and file for bankruptcy. Or you may come into an inheritance or win the lottery. In either case, your finances change in a significant way. You want your estate plan to reflect the true assets you have. This way, you can divide them fairly among your loved ones.