Estate plans allow a testator (the person making the plan), to leave instructions for their estate when they pass away. They can name an executor who will take responsibility for implementing their wishes. The estate planning process can take some time and work to complete.
The testator should revisit the plan when there are changes to their assets. Here are a few more reasons people revise their estate plans:
1. They move to a new state
Each state has unique estate planning laws. If the testator recently moved to Iowa, then they may need to revise their estate plan to follow Iowa laws. Leaving an estate plan unedited after a move could create difficulties during the probate process.
2. They divorce
It’s very common for a testator to draft an estate plan with their spouse in mind. However, this may need to be changed if they divorce. This may mean removing a spouse from being a primary beneficiary or giving someone else the role of power of attorney.
3. They have a child
A testator who recently had a child may want to consider making a trust to protect assets for their child’s future. They should name a guardian to ensure the safety and protection of their child in the event of their death.
4. A beneficiary dies
Unfortunately, many people outlive their beneficiaries. Testators may need to revise their estate plans to name new beneficiaries. Testators may also want to consider naming secondary and contingent beneficiaries as a way to avoid issues in the future.
Knowing when it’s time to update your estate plan is important. You may need to reach out for legal help to learn what you might need to change.