One of the questions many people have when creating an estate plan is whether they can make changes later. Yes. It is possible to update an estate plan, and it is often recommended to do so regularly.
If you have an estate plan and are unsure if you need to update it, you may want to learn why this can benefit you and how soon you should make changes. Here is what you should know:
What are the benefits of a revised estate plan?
The main benefit of updating an estate plan is that you can add or remove assets from your itemized list. This is a common change that many people make after buying or selling valuable assets (real estate, vehicles, jewelry, etc.). You can also change who can benefit from your estate plan, adding or removing beneficiaries.
Another reason you may want to update your estate plan is because you want to protect your legacy. After learning about your legal options, you may want to add a trust to your estate plan. A trust can help to protect your estate from disputes, probate and estate taxes.
You may also need to update your power of attorney or living will, especially if you begin to develop serious medical conditions. A power of attorney and living will can help you control how you would be taken care of if you suffered from a serious injury or illness and can no longer care for yourself.
A revised estate plan may also benefit you if you recently had a child. You can assign a guardian who would be responsible for caring for your child if you suffered a fatal injury or illness.
How often should you alter your will and other legal documents?
If you are considering making changes to your estate plan, then this may be the right time. However, many people do not update their estate plan for three to five years. This is often about the amount of time for people to add valuable assets to their estate. You may also want to consider making changes to your estate plan if you recently married, divorced, lost a beneficiary, had a child or developed an illness. Legal guidance can help you keep you estate plan current.