Your will details what you’d like done with your assets after you’re gone. This essential legal document must be updated from time to time to ensure it’s still relevant to your needs. Failure to update your will after significant life changes could negatively impact loved ones if assets are left to the wrong heirs. Wise Bread explains when updating your will is an absolute must.
Real estate is often passed to heirs via wills. Accordingly, the purchase of a new piece of property calls for a review of your current will so it can be included. The sale of a home also calls for an estate plan update, since the property will no longer be in your possession. Keep in mind that estate planning laws vary from place to place, so if you move out of state you may want to review documents with a lawyer to ensure they’re still viable.
New marriages are cause for celebration, but they also impact the estate planning process. For example, if a former spouse is still listed on your will, that person stands to inherit your assets after you die, leaving your new spouse out in the cold. Any family changes, including the birth or adoption of a child, should trigger a will review as soon as possible.
Your financial status is another important situation. If you have a great number of assets, you can arrange your estate plan in such a way that it minimizes costs for you and your loved ones. if you receive a large influx of money, you should speak with an attorney about keeping taxes and other costs manageable. You’ll also need to revamp your will if you lose many assets or property.