If you already have an estate plan, you may feel that you have all of your financial and legal arrangements in place. This may be true, except when there are changes in your life. Here are three types of life changes that make it necessary to revise your estate plan.
Changes in the composition of your family likely mean that you immediately need an overhaul of your designations. Divorce, marriage, birth or adoption of a child and blended family situations all call for modification. After a divorce, you will want your estate plan to reflect your status change, as well as removing some assets due to the divorce settlement.
After marriage, you will be able to craft a combined estate plan with your new spouse. If this is the second marriage, blended families need to be taken into account. Having an estate plan that includes future divorce or re-marriage protection for your heirs will mean that your wishes get carried out exactly as you intend.
If you have a new dependent child in the house, you need to designate who you want as a guardian if you’re disabled or have expired. While your children are minors, include provisions for their financial support
Medical Status Changes
If you or a family member becomes permanently ill or disabled, a revision of asset division may be needed to ensure that the impacted person has adequate resources for medical bills and living expenses.
If you inherit money or property after you have made your initial estate plan, you will need to rework it to reflect the changes in your assets. Also, changes in tax laws make it imperative to review your estate plan periodically. That way you’ll be sure that you’re taking every advantage you can to lower your tax bill.
Source Link: http://www.forbes.com/sites/markeghrari/2017/01/02/6-reasons-to-revise-your-estate-plan-as-soon-as-possible/#6c4bfd16e1e1