Very few people are excited about calling an attorney to create an estate plan. It never seems like quite the right time, and there are numerous challenges to making sure everything is up to date.
However, there are certain life and personal events that should make you take the prospect of creating a will more seriously. In fact, there are good causes for estate planning during every phase of life. Below are three reasons to create an estate plan.
- You haven’t created an estate plan yet.
This is the most important reason for creating an estate plan. If you don’t have estate plan, state law will dictate who inherits your assets when you pass. Further, failing to create a comprehensive estate plan could result in your family now knowing your wishes, not only for your asset transfers but your late-life medical care and other issues, as well. This could result in unnecessary tension and conflict that could be avoid easily with a well-considered estate plan in place.
- You have experienced a change in relationships.
The most common examples of relationship changes that would influence your estate plan are marriages, divorces and deaths. After getting married or going through a divorce, most people want to change their beneficiaries. Further, your property holdings, assets and debts will likely change as a result of a divorce, and you might want to change any designations of stepchildren as beneficiaries.
After someone you love dies, this might be a good time to update your will. This is true if the person who died was named a beneficiary in the estate plan or if you received a significant inheritance.
- Your financial situation has changed.
In this category divorce comes up again since most divorces result in some significant financial changes for both parties. Other examples include getting a new job, getting a promotion, losing a job, buying or selling a home or other high-value property, major costly illnesses and other financial events.
Any event that has a significant impact on your financial status could be a good reason to create or revisit your estate plan.
If you have not created an estate plan or if you have experienced significant personal or financial changes, now is the time to create or update your estate plan. The best way to proceed is to talk with an experienced lawyer who can walk you through the process.