Life changes all the time. This is especially true when it comes to your estate plan. When you first drafted your estate plan, it was based on your circumstances at the time, your assets and finances, the people in your life as well as existing laws. Looking 5, 10, or 20 years back, it is not surprising that a lot has changed both in your life as well as state and federal laws. It is these constant changes that necessitate the need to update your estate plan periodically.
An estate plan is not a document that should be written once and locked up in a safe only to be accessed when you pass on. It is important that you review your estate plan and keep it up to date as years pass by, laws change and people come in or leave your life.
Here are some of the major life changes that may warrant a review of your estate plan:
When you are relocating to Nevada from another state
It is important that you review and update your estate plan as soon as you move to Nevada from another state. Remember, each state has specific laws regarding the administration of wills, powers of attorney and other estate planning documents. Documents executed in another state may not work as well in Nevada or might cause delays and extra expenses because parties in this state are unfamiliar with the documents or unwilling to accept them.
When there is a separation, divorce or remarriage
It is important that you revise your estate plan in an event of any of these three scenarios to ensure that your wishes are reflected in terms of who will inherit your assets or serve as a Trustee or Executor. Failure to update your beneficiary designations after divorce or remarriage can result in unnecessary legal expenses to verify that your estate is not passing on to your ex-spouse, or your current spouse missing out on a share of your separate property assets.
If you or your new spouse are bringing outside children into your marriage you may need to make special considerations to ensure that your and your children’s interests are protected in your documents.
The importance of having an up-to-date estate plan cannot be overstated. With a well-written estate plan, you can have peace of mind knowing that you have adequately prepared for the future.