California residents create an estate plan. Unfortunately, many simply let it sit after that point. They do not change it. They do not understand that you must keep your estate plan updated.
Today we will look at times when most people decide to update their estate plans. In knowing this information, you can decide what time would be best for you.
Update your estate plan when it suits you
Forbes looks at times in your life when you may want to update your estate plan. First, note that you do not need to wait until a specific time to update your plan. You can do so at any time for any reason. Many people update their plans every five or ten years. This lets you refresh your memory about the contents of the plan. If you spot anything you no longer agree with but forgot to change, you can change it then.
Many people wait until a significant life change to alter their plan, though. For example, let us say you divorce a spouse or marry someone. In the case of the former, do you want your ex-spouse to have any of your estate or assets? The answer is likely no. For the latter, do you want your new spouse to have nothing? Again, you likely answered no. Updating your plan allows you to alter who gets what. This also applies to new or estranged children.
Life changes and your estate plan
Other life changes include ones to finances and ones to your location. For finances, you want to make sure you are not giving away things you do not have. If you go into debt, you must restructure your estate plan. If you come into extra assets through inheritance or other means, you should also update.
For moving, you should look at the local laws in your new home. They may handle estate plans in a different way. Update your plan to ensure it complies with local law. This means the state will consider it valid, which saves trouble for your loved ones.