Most Pennsylvanians agree that an estate plan is important, but not everyone has one in place. If you are a part of the proactive group who got this off your to-do list from early on, you may wonder, what is the point of changing it now? The truth is that you may not need to update your estate plan at all.
However, if you have experienced certain life changes, no matter how solid your original estate plan is, you may need to revise and update it. Life changes that affect your family makeup, living arrangements and income status may all create the need for an update. Here are a few of the most common reasons that Forbes identified.
Your marital status changed
If you marry or re-marry, this may create some complications, especially if you have children from a former marriage. Joint accounts with the current spouse may cause you to accidentally disinherit your children. If you get divorced, you may wish to remove your ex-spouse as a beneficiary.
You become a parent
Whether you have a biological child or adopt one, becoming a parent may give rise to some necessary changes in your estate plan. You may wish to ensure that your child becomes a beneficiary. Some parents also appoint a legal guardian and put a trust in place to protect the children’s inheritance should something ever happen to the parents.
You buy or sell a business
This can have a significant impact on your assets. If you sold the business, some of the assets listed in the original estate plan may no longer exist. You may also now have more cash to dispose of. If you buy a business, you may need to decide who gets what in the event of your passing.
There are many reasons you may need to review your old estate plan. This may seem like a hassle at first, but it gives you the opportunity to account for new priorities.