Estate planning is an important part of life, one that many put off until it is too late. For those who have planned ahead and have created an estate plan, there are certain times in life when these documents should be updated. We will discuss those reasons and their importance in today's post.
A common reason why many people have to update their estate plan documents is due to the death of named individuals in the plan. These named individuals could be beneficiaries, executors, powers of attorney, medical powers of attorney and more.
At the other end of this spectrum, your estate documents should be updated when new people enter your life, such as when you get married, the birth of a child, the adoption of a child or if you simply want to name someone new as a beneficiary or power of attorney.
When your children reach the age of 18, you should update your estate plans as well. This update will include the removal of clauses about guardianship and other issues related to when your children were still minors.
If you get divorced, your estate plan should be updated when the filing becomes final. This will ensure that your former spouse is no longer a beneficiary or power of attorney.
Every now and then, the laws in the state of Illinois change when it comes to things like estate tax, assets and other issues. Whenever new laws are enacted or old ones are updated, you should take a long look at your estate plan and determine if it needs to be updated to reflect those legal changes.
Even if none of the above has occurred, you should still review your estate plan every three to five years to ensure that it is current with your life at the time.
If you are in need of an estate plan or need to update your documents, contact our firm in Crystal Lake, Illinois, to discuss your situation.