An estate plan is not something that you create once and forget about. It should be updated regularly to reflect changes in your life or changes in your preferences. Here are a few reasons to update your Massachusetts estate plan.
Birth of Children
If you have children for the first time or have additional children, this is an important reason to update your estate plan. You will need to assign a guardian, change how you distribute assets, and ensure that funds are available for their care. Estate plans for single or married individuals often look much different than those for families with children. Ensure that your children will be properly cared for by altering your estate plan.
Marriage & Divorce
Marriages and divorces are two very important reasons to update your Massachusetts estate plan. At a minimum, you should change beneficiaries. For marriages, your combined assets may exceed thresholds for state and federal taxes, but there are ways to minimize that. If you have children from previous marriages, you may want to account for that. For divorces, whether you have children together may change how you approach your post-divorce estate plan. Whether you are getting married or divorced, your personal circumstances and preferences will determine exactly what needs to be done to your estate plan, so it’s important to sit down with your estate planning attorney to discuss and make appropriate changes.
Income & Debt Changes
If your income/assets or debts dramatically change, it’s time to re-evaluate your estate plan. Estate plans are intended for more than naming beneficiaries. It should be used to maximize the value of your estate, minimize tax burdens, support your heirs, and more. Whenever assets or debts change, it’s a good idea to review your plan. For instance, if you incur more debt, you may want to increase your life insurance coverage to account for it.
Other Reasons to Update Your Massachusetts Estate Plan
The above are just 3 important reasons to update your Massachusetts estate plan. There are many other reasons why you may want or need to change your plan. In fact, it’s a good idea to review your estate plan yearly to ensure that it still meets your needs. Contact Martino Law Group for all of your estate planning needs.