Regardless of your age, estate planning is essential for ensuring you have plans in place to protect yourself, your finances, and your family. It’s easy to think that an estate plan is something that you can forget about once you set it in place, but you should update it periodically as your personal circumstances change. Here are four key life events that are crucial points for updating your estate plan.

4 Life Events That Require Estate Plan Updates

1. A Change in Your Relationship Status

If you marry or become involved in a committed relationship, you should alter your plans to name your new significant other as a beneficiary. This will ensure your partner is taken care of if anything should happen to you. Conversely, any time you get divorced or go through a breakup, you should revise your estate plans to reflect that change. Otherwise, an ex-spouse or ex-partner may have a claim to assets that you wanted your children or a new spouse to receive.

2. You Have a Child

In addition to making your new child a beneficiary, you will also want to arrange for a guardianship for the minor children in your family. By naming a guardian in your will, you’ll ensure that the person you choose will be responsible for raising your children and managing their assets in the event of your passing. Otherwise, the court will appoint a guardian who may not necessarily be someone you trust to love and raise your children.

3. There’s a Change in Your Financial Situation 

There are many ways that your financial situation will change in your life, such as receiving a raise or joining a 401(k) retirement plan. When these events do take place, it’s important to account for them in your estate plans. For instance, you will have to choose a beneficiary for your 401(k) and arrange for the transfer of those funds in a way that will protect the beneficiary from being overtaxed.

4. Buying Real Estate

When you buy a home or another type of real estate, you’ll also have to set up a plan for passing this property on after your death. If you leave this property to a beneficiary in a will, the property may be liquidated to pay off estate taxes and outstanding debts. This is why it may be better to transfer the property to a spouse or child via a living trust. This can reduce the risks that the real estate will be tied up in the probate process, allowing your loved ones to receive the property much sooner.

If you want to make sure your final wishes will be carried out, Monteleon Law Group of White Plains, NY, can help you review your plans to ensure everything is up to date and takes advantage of the most recent tax law changes. To learn more about the firm’s legal services, visit their website. If you would like to schedule an initial consultation to discuss your estate planning needs, call (914) 840-2529.