There are several reasons that South Carolina residents might need to update their estate plans. Many people tend to think of creating an estate plan as a one-and-done deal, but the reality is that many estate plans need to be updated every couple of years or so.
There are a few cases when estate plans should be immediately updated as soon as possible though. These can be dramatic life changes as well as changes to your financial assets.
What life events would constitute updating your estate plan?
Life events are really good reasons to update your estate plan. Some life events that might require you to update your estate plan can include but aren’t limited to:
– The birth of a new child or grandchild
– The death of a child or grandchild
– The death of a spouse
– Loss of a job
These life events can be a lot to handle by themselves. What happens is many people end up forgetting to update their estate plans even months after the life event.
What can happen if you don’t update your estate plan?
Failure to update your estate plan can lead to headaches and problems down the road. For example, failing to update your estate plan after the birth of a new child or grandchild could lead to them being excluded from your will unintentionally.
Even worse, if a person were to get divorced and not update their estate plan, then their ex-spouse would still be entitled to their financial assets. This can cause a lengthy legal debate for your children that could have its own emotional toll.
How do you update your estate plan?
Updating your estate plan is easier than it sounds. First, you want to make sure you have a current copy of any estate plans as well as life insurance policies.
After you’ve gone over everything, you’ll want to make sure that all the beneficiaries are updated, and all major assets are accounted for. Frequently updating your estate plan might help make sure that nothing is missed.