Minnesota residents like you create estate plans to manage your assets after your passing. Estate plans do not last indefinitely, though. Over time, you may come across different scenarios that could lead to you updating your plan. Today we will look at some of these situations.
Updating your estate plan is a natural part of the planning process. In fact, Forbes goes a step farther, saying old estate plans can harm your wealth. To avoid your estate plan becoming obsolete, you must stay on top of local and national law. Pay close attention to tax laws and other litigation relevant to estate plans. You will also want to check local laws if you ever move to a new state or country. The laws dictating estate plans there may be different.
Next, keep an eye on changes in your life. Big life changes often lead to estate plan updates as you decide who to add and remove to your plan. Some examples can include:
- Marriage or remarriage
- The introduction of a new dependent into the family
- The birth of a newborn
If you discover that a dependent has a learning disability, this may also be a reason to update your plan. You will likely want to include a trust for them. With this, you ensure that you can manage their share of your assets even after your passing.
Finally, financial changes may dictate that you update your plan. If you gain or lose significant amounts of money, you will want your plan to reflect this. These are three of the biggest reasons to consider updating your estate plan.