People work hard to amass various assets through businesses and organize them in estates. As such, it is only right that someone should get to choose what happens to their belongings.
An estate plan helps people gain control over the future of their holdings. To ensure that the strategy aligns with the estate holder’s wishes, it is often essential to review and possibly revise plans after certain life events.
Marriage or divorce
Marriage and divorce are important changes that affect many aspects of people’s lives, including their estates. It is wise to add or remove beneficiaries as soon as possible after these events. They should also update any other items they may have with named beneficiaries, such as life insurance policies.
Birth or passing
When a new child enters the home, whether through birth or adoption, changes may be necessary to include them in the will. For new parents, it is also important to designate guardianship for the children.
Another situation that may necessitate changes to an estate plan is when a spouse passes. If the deceased spouse bequeaths certain assets to the surviving spouse, it may be necessary to alter an estate plan to account for those new assets. On another note, the living spouse may also receive tax exemptions for the estate if the executor files a return within the appropriate period.
Asset or inheritance acquisition
Whether estate holders generate new assets by their own hard work or receive them as a gift from another, it is a good idea to plan for management of significant wealth. It is important to note that this may not always have to do with money. For instance, an estate holder may designate the distribution of a family heirloom he or she receives from a relative who passes away.
These are a few of the main reasons to alter an estate plan. However, each situation is different, and there are frequent changes to the law. It is a good idea to review wills periodically and make any changes necessary for the good of an estate.