One thing that many people in the Fowlerville area fail to take into consideration about their estate plans is updating them. Estate planning is not something that you do one time and never have to deal with again. As long as you are alive, you will experience events that affect your income, assets and family, such as the loss of employment, marriage, divorce, birth and death.
If you do not revise your estate plans so they reflect your current financial picture and assets, your loved ones could end up not receiving the inheritances you thought you were leaving behind. Consider the following suggestions when looking at your estate plans.
Periodic reviews and updates are necessary
Any time you experience a significant life event, you should review your estate plans. For example, if you divorce your spouse, you need to revise your estate documents, financial and retirement accounts and life insurance policies so your spouse and anyone else you do not want to receive them when you die, do not. The same goes for births, deaths, changes in income and any other event that might have an impact on your estate.
End-of-life plans are a failsafe
You should consider the fact that you might live longer than you expect. According to NPR.org, two-thirds of Americans can benefit from advanced directives, but they do not have them. Advanced directives and power of attorney are two of several estate planning protections you can use to ensure your medical and financial needs are taken care if you become unable to manage them yourself.
Estate plans enable you to remain in control of your estate and life if you become incapacitated or die. Not utilizing the right estate planning documents and protections and updating them as often as necessary can lead to unintended financial consequences at your beneficiaries' expense.