Don’t let complacency set in once you have created your estate plan. If you do so, you’re likely to mismanage its assets later on. The reason comes from simple life events. To defer taxes or protect your assets from unwanted beneficiaries, you have to revisit your estate portfolio. Whether they have inherited money or got a big bonus at work, Maryland residents can encounter life events that will require another look at one or more plan components.
By the age of 18
You can legally have an estate plan prepared once you have reached the age of 18. If an estate is set up this young, it can be updated for the entire life of the estate’s owner. The same is true for you, but you can start older if it’s necessary. The fact that you have possessions and income makes an estate possible today.
After major life events
Estate planning is only one step in protecting or growing your assets. Updates are then needed to adjust for changes in views or beneficiaries. During major life events such as the birth of a new child or grandchild, adjusting a will can ensure that no conflicts occur once you die.
After a divorce
A divorce shifts the value of an estate, its assets and beneficiaries. You must specifically account for your assets after a divorce. Completing the divorce isn’t enough. You must make sure that your will no longer accounts for assets you had during a marriage. An update in this case accounts for any new wishes you want enacted.
You can also update your estate to specifically protect your assets. Though trusts, for example, hold assets like stocks and cash, trusts aren’t contested in court.