Without question, one should always consider creating or updating their estate plan after a major life event.
Indeed, as your circumstances change, so would your estate plan – not only in order to ensure that your loved ones are protected after you pass, but to avoid the confusion and infighting that can ensue if your estate plan is not current.
What circumstances make creating or updating your estate plan beneficial?
There are a variety of scenarios that can make it beneficial to create or update and estate plan.
Ultimately, any major changes to your family or financial circumstances make estate planning a smart decision.
For example:
- getting married
- getting divorced
- having a child
- losing a family member
- preparing for retirement
- becoming estranged from a loved one
- acquiring valuable property
- liquidating assets
- getting diagnosed with a major medical issue
What changes or documents do people need to establish?
Every scenario leads to different estate planning needs. Some people simply need a will to designate beneficiaries and nominate someone to serve as a guardian of their children or the personal representative of their estate.
Others may want to establish trusts to provide long-term protection for dependent loved ones or preserve their resources. Living documents including advance directives and powers of attorney can be beneficial for those preparing for retirement or facing issues that can negatively affect their health.
Sitting down to discuss personal changes and estate planning needs may help people ensure that they and their loved ones have appropriate protections in place, and major life events should serve as a reminder to plan for an uncertain future.