Estate planning is a lifelong process, as you can make updates over the years as factors change.
If you already have an estate plan, you know its importance. Your estate plan protects your assets throughout your lifetime and prepares for instances of incapacitation and death so your loved ones can inherit your assets without any issues. However, putting that initial plan in place is only the beginning of estate planning. Having an out-of-date estate plan can sometimes be just as bad as not having one. This is because estate planning is a lifelong process. Once you create a plan with your trusted attorney at The Millman Law Group, updating your plan after the following events or every five years is highly recommended.
A New Marriage
When you marry, you want to include your spouse in your estate plan. This may influence beneficiary designations on your Will, retirement plan, and life insurance policy. If one of your children marries, this may trigger an estate plan review. Adjusting your estate plan is best if you want to plan more carefully to keep assets or inheritances in your immediate family.
Divorce
A major mistake individuals make when estate planning is to forget to change their plan after a divorce. Failing to update your plan after a divorce could result in your ex-spouse staying beneficiary of significant parts of your estate. And if you have a new spouse, you will want to ensure they are named on your documents rather than your ex.
The Birth or Death of Beneficiaries
The death of anyone in your estate plan should prompt a review. This may mean that you need to change your distribution plan. When a new child or grandchild is born, this should also be specifically noted in your plan to ensure that your beneficiaries are correctly identified.
Your Children Age Into Adulthood
Because estate planning is a lifelong process, when your young children reach the age of majority, this can change your plan. When your children were minors, you had to take special measures to protect their inheritance and select guardians. Once your children are legal adults, you can gift them assets directly and decide on new distribution methods.
A Significant Change in Your Assets
Minor changes should be accounted for in your plan without needing extensive updates. However, if you make significant changes to your assets, such as buying or selling a business or home, you will want to review your estate plan to ensure all information is correct.
Retirement
When you retire, you might start withdrawing funds from retirement accounts and selling major assets. This will, of course, require a review of your estate plan. If you have not yet considered Medicaid planning at that point, you will want to do so as soon as possible.
A Serious Illness
Your estate plan should be prepared to handle your incapacity or a terminal illness. However, if you are diagnosed with a serious illness, it is always worthwhile to review your plan as soon as possible to ensure everything is as you want.
You may feel overwhelmed by the prospect of estate planning as a lifelong process. However, your estate plan is designed to age with you. After creating your initial plan, updating it will be much easier. All the while, you can enjoy peace of mind when you know that you have a plan for anything that may happen in your future.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.