One of the major mistakes people make with their will is failing to update it. People should consider updating their estate plan every three to five years. This is typically the amount of time it takes for people to build up the value of their estate.
Estate planning is a lifelong process, and many people update their will after a major life event. Here are some major life events that could impact a will:
Marital changes
People often update their will after marriage. A newlywed spouse may be included in a will as a primary beneficiary or power of attorney. However, a will may need to be altered after a divorce as well. An ex-spouse may need to be removed to protect the estate.
Childbirth or adoption
Many people add their children to their will. A newborn child or adopted child may be included as a beneficiary of the estate. A will may also include a child guardian to care for a child if their parents suddenly pass away.
Beneficiary changes
Changes may be made to a will to add or remove beneficiaries. This can happen after a beneficiary passes away or has a falling out. Beneficiaries may also be added to inherit new assets.
Serious medical diagnosis
A will may need to be updated if a person has developed a serious medical condition that impacts their physical or cognitive health. The will may include a power of attorney to care for a person’s needs if they become incapacitated.
Moving to a new state
Each state has unique estate planning laws. A will may need to be altered if a person moves across state lines to meet state will and tax laws. Professional legal guidance can help people make changes to their wills.
