Keeping your Estate Plan up-to-date
There are two common mistakes most people make when it comes to estate planning. Failure to create an estate plan, and if you have one, failure to keep it up-to-date is the second mistake. Note that the circumstances that necessitate a revision of an estate plan vary from an individual to another. Besides, if your will is three years or more, you need to consult with an expert in estate planning in San Antonio to update it.
Probably there is a significant change in the specific laws that govern some assets such as advance medical directives or powers of an attorney. In this case, it is in your best interests to get your estate plan updated. Besides, this document must be updated when particular life-changing events occur. These are specific events whose consequences are likely to have a significant impact on your will. These events include;
1. A substantial change in your financial obligations and assets
A substantial change in the value of your properties and other related assets since the estate plan was drafted is enough reason to get the plan updated. This change could be positive or negative. It is important to take the time to analyze how you have distributed your assets among your heirs and decide if a change is necessary.
Additionally, a variation in the essential components of your assets profile merits an estate plan review. Perhaps you have liquidated some of your fixed assets. This can cause a significant change in the individual assets in your estate plan.
2. You shifted to another state or country
Keep in mind that the specific laws that govern real estate vary from state to state or from one country to another. While some of the differences like the number of witnesses need for a will to be acceptable, are trivial. Other variations may be substantial and might require you to revise your will. For example, some states require that your spouse must inherit a particular minimum share of your assets. However, this condition varies from state to state.
Generally, the laws governing estate plan and the overall will vary. Thus, some components of an estate plan such as living wills, powers of an attorney, and advance medical directives may be impacted. If you intend to shift to another, there is a good chance you need to evaluate and update your estate plan.
3. There are significant changes in your marriage
Obviously, once you get married, you should include your spouse in your will. It’s also essential to revise your estate plan if your partner has kids before you marry. Divorce is another significant change in your marriage that may require you to update your will. And an extra child means an increase in the number of your beneficiaries. Thus, an estate plan update is important.
If it has been a while since you created an estate plan, it’s time to review it and make the necessary changes based on the events discussed above.