American Indian Owned Law Firm

When do people update their estate plans?

On Behalf of | Jul 14, 2023 | Probate & Estate Planning

Have you made an estate plan in the past? Did you know that you can revise your estate plans? Many people don’t, which can create issues for beneficiaries.

Here are a few reasons why you may need to update your estate plans:

After a beneficiary passes away

Estate planning is a process that intends to prepare an estate for the testator’s passing. Assets, in theory, would go to beneficiaries listed in the will.

Unfortunately, some testators outlive their heirs. When this happens, testators may need to consider altering their estate plans to reflect an heir’s passing. This could mean assets would be distributed between previously listed heirs or the assets could go to relatives of the deceased heir.

After marriage

Many people alter their lives around their marriage. They may share homes and bank accounts. One way people can further this shared companionship is by changing their estate plans to include their spouses. A testator may name their spouse as an heir who would gain the most from an estate. Or, a testator may name their spouse as a power of attorney to handle any of the testator’s financial and medical decisions during an emergency.

After starting a business

Many people start businesses during their lives. They may wish to ensure their business is in good hands after they pass away. One way this could be done is by making a business succession plan in their estate plans and naming someone to take on the business.

After several years

Many people don’t update their estate plans for many years and, as a result, some assets are left unaccounted for. One way people can prevent this from happening is by updating their estate plans every few years.

As you work out a revised estate plan, you may want to reach out for legal help to learn what your best options are for you and your heirs.