Did you know that you can update your estate plan? This is beneficial for many people who want to add or remove assets from their estate plan. It is often recommended that people update their estate plan every three to five years to keep their last wishes up to date.
However, there are many reasons to update an estate plan. For example, you may want to update your estate plan after getting married or having children. But, what part of your estate plan should you change? Here is what you should know:
Adding beneficiaries
A beneficiary is someone who can gain an inheritance from your estate. You may need to add beneficiaries for many reasons. For example, you could add a spouse to your estate plan if you have married since you last updated your estate plan. You may also need to add a beneficiary if one has passed away. However, you could also remove a beneficiary if you had a falling out with someone and no longer trust them to use their inheritance wisely.
Altering your power of attorney
A power of attorney can act on your behalf if you become incapacitated. It is often important to have a power of attorney who is trusted to act in your best interest. You may need to alter your power of attorney if the one you named is no longer fit for their role.
Creating a trust
If you have a sizable estate, you may want to protect your estate from disputes, probate and taxes. You may want to add a trust to your estate plan. A trust is used similarly to a will, however, a trustee is in charge of the management of your estate.
You can reach out for legal help to learn more about updating your estate plan.
