Making an estate plan is a good first step to take. Even if you’re relatively young, you at least want to have a plan on file. You’re always allowed to update this plan in the future, so you don’t need to worry about doing it too early. You cannot be too young for estate planning.
The key, then, is to identify when it’s time to update that plan. Below are a few important times to consider.
The birth of a child
If you were not a parent when you made your plan and then you had a child, you absolutely need to update many of the documents. You may need to change your life insurance beneficiary designation, for instance, and you may need to choose a guardian for the child in case you pass away.
A change of marital status
If you get married or you get divorced, that’s another time when you need to update your estate plan. It’s important to remove your ex if you’re ending a marriage, but it’s equally important to add a new romantic partner if you want to ensure that they get some of your assets.
The diagnosis of a disease
If you’re diagnosed with a medical condition, especially if it’s a chronic condition or predicted to be terminal, then you may need to update your estate plan at that time. You need to address all of the necessary medical care, and you need to make sure that you have an advance directive and/or a healthcare power of attorney.
These are just a few examples of times when you need to update your estate plans. Be sure you understand exactly what legal steps to take to make sure that your plans truly meet your needs.
