Some of the biggest changes in people’s lives might necessitate a change to one’s will. Comprehensive estate planning could be beneficial to loved ones when someone passes away, but if one creates a plan when they are young, they will likely want to change the terms as they age, acquire more assets and add to their family.
Having a child or having another child is an event that might necessitate creating a new will if one wants offer the child a specific portion of the estate. Getting married is another time to reconsider one’s will because in most cases a spouse does not become the primary beneficiary automatically. People who are living together but are not married might need to put their partner in their will as well.
People who get divorced may also want to redo their will because in some states, a divorce revokes some or all of the previously established plan. When a spouse dies, the terms of a will should change to ensure assets are redistributed. Moving to another state might also necessitate modifications, allowing the old document to conform to new laws. In addition, proper estate planning could be beneficial when someone reaches a net worth high enough to make one’s assets vulnerable to the federal estate tax.
Despite the advantages, estate planning can be a complicated process because of the many options. A will often works best when combined with a trust, but there are many types of trusts that best match certain goals. An attorney could evaluate one’s financial situation and recommend an estate plan to align with a client’s goals for the future and for their family.
Source: Kiplinger , “Good Reasons to Change Your Will“, December 22, 2014
