The Importance of Updating Your Will and Trusts
Creating a will and establishing trusts are significant steps in securing your estate and ensuring your wishes are honored after your passing. However, many individuals overlook the importance of periodically updating these documents. Life is full of changes, and keeping your estate plan current is essential to protect your interests and those of your loved ones.
Major Life Events
One of the most critical times to update your will and trust is after experiencing significant life events. These events can include:
- Marriage or Divorce: Whether you get married or divorced, your estate plan may need to reflect your new marital status and its implications for asset distribution.
- Birth or Adoption of a Child: Welcoming a new child into your family means you may want to designate guardians or include them as beneficiaries in your plans.
- Death of a Beneficiary or Executor: If a named beneficiary or executor passes away, you must update your will or trust to select new individuals.
Changes in Financial Status
Your financial situation can change significantly over time, impacting how you want your estate to be managed. Essential triggers for updating your estate plan include:
- Acquiring New Assets: If you buy a new home, start a business, or acquire significant investments, consider how your estate plan will handle these assets.
- Substantial Income Changes: A significant increase or decrease in income can affect your tax liabilities and how you wish to allocate your assets.
Shifts in Personal Relationships
Personal relationships can evolve, and ensuring your estate plan reflects your current wishes regarding those relationships is vital. Consider updating your will and trusts when:
- Friendships Change: If you wish to include or exclude friends as beneficiaries, it’s important to reflect that in your estate plan.
- Family Dynamics Shift: Changes in relationships with family members, such as estrangement or reconciliation, may necessitate updates to your beneficiaries or guardianship designations.
Regular Reviews and Updates
Even without significant life events, conducting regular reviews of your will and trusts is crucial. Reviewing your estate plan every three to five years or after any significant life change is generally advisable. This ensures that your documents have your actual wishes and circumstances.
Keep Your Estate Plan Current: The Importance of Updating Your Will and Trusts
Updating your will and trusts is not merely a formality; it’s a vital aspect of effective estate planning. By recognizing when and why updates are necessary, you ensure that your estate plan reflects your wishes and provides for your loved ones. At Beaupre Law, we specialize in estate planning and are here to assist you in reviewing and updating your will and trusts. Contact us today to ensure your estate plan is current and comprehensive.