Estate planning is a process that allows a person to decide how their assets are handled after they pass away. The process involves creating an itemized list of assets, naming beneficiaries and several other steps. Once an estate plan is drafted, many people mistakenly believe the process is over. Yet, estate planning is a lifelong process.
At any time, you can update your estate plan. There may be a time during your life when updating your estate plan can benefit you and your loved ones. Here are some questions to consider when making changes to your estate plan:
How long has it been since you last made changes?
One of the considerations to make before you update your estate plan is how long it has been since you first drafted or last updated your last wishes. If it has been more than five years, then it may be time to alter your last wishes and include new assets.
Did your marital status change?
It may be time to update your estate plan if you got married or divorced. You may need to consider why a spouse or ex-spouse and children are included in an estate plan. For example, you may need to add or remove a spouse as a power of attorney.
Has your health changed?
As you get older, you begin to develop more health issues. As a result, you may need to consider your end-of-life care. It may be time to name a power of attorney or draft a living will to help manage your medical and financial matters if a time ever comes when you cannot care for these matters on your own.
Seeking legal guidance before you update your estate plan can help you learn about your options.