If you have an estate plan in place that is great news. You have taken steps to prepare for the future. Still, it is a good idea to update that plan from time to time. This is especially true if you have experienced any major life changes.
Make sure your estate plan has all the important elements, then update it every four or five years. Update it also if any of the following things happen.
If you downsize
If you choose to downsize from a larger home to a smaller one, it may mean updating your estate plan. For example, if you bought your home a few decades ago, it may now be so valuable that you cannot qualify for Medicaid. Medicaid provides you with long-term health and nursing care. You could give that home to your children while you are still alive to qualify for Medicaid. If you choose to do this, you will need to update your estate plan to remove that home.
If you have children
Having a child is a wonderful change in your life. Yet, if you do not update your estate plan, your children may wind up in foster care. Failing to provide for the care of children is one of the mistakes people make when it comes to estate planning. Make sure you create a guardianship plan for your children. If your children have medical issues or disabilities, have a trust fund set in place.
Updating your estate plan keeps it relevant and ensures a sound plan is in place for when difficult times arise.
