Estate planning attorneys always tell their clients that anytime the client undergoes a significant change in life circumstances, the client should come back to the attorney so the estate plans can be changed to reflect the new circumstances. However, that leaves open the question of what changes are considered significant enough to require immediate change to an estate plan.
While it is impossible to list all of the possible significant changes, Forbes recently listed some common ones in "6 Reasons To Revise Your Estate Plan As Soon As Possible," including:
- If you get divorced, you should change your estate plan to exclude your ex-spouse.
- If you get re-married, then changes need to be made to include your new spouse in your estate plan, especially if you have children from a prior relationship that need to be provided for.
- If you have another child, it is important to change your plan to make sure that the new child is included.
- If you have a serious illness or injury, then your estate plan should be reviewed to make sure you can meet your needs.
- If the tax laws change, consider reviewing your estate plan to determine how the changes could affect your planning.
- If you receive a large inheritance, then you will want to change your estate plan to reflect your new financial circumstances.
Reference: Forbes (January 2, 2017) "6 Reasons To Revise Your Estate Plan As Soon As Possible"