Estate planning is an essential tool to help you ensure generational wealth. However, this tool is most effective when it is current.
If you already have an estate plan, you should update it when any of these life changes happen.
1. Your assets change
Making more money is a good thing, but if you do not include asset changes in your estate planning documents, the distribution process can get complicated after your passing. Similarly, if you take a significant loss on your investments or liquidate some of your assets, you should update your estate plan to reflect the changes.
2. You have a new child
When you welcome a new child into your life, you should add them to your list of beneficiaries and outline a plan for their care as soon as possible. Doing so can help you provide for them even if you are not around to care for them directly.
3. You need to change a trustee or executor
People change, and so do relationships. If you no longer feel comfortable leaving your estate in the hands of your appointed trustee of executor, or if they are not up to the task, make this change sooner rather than later.
4. You are moving
If you are moving to California, now is the time to update your estate plan. Estate planning laws vary by state, so it is vital to make sure your old estate plan covers all the bases here.
Estate planning is necessary for securing your wealth for future generations. Make sure you promptly update your plan when these life changes occur.