As a resident of New Jersey, you must create your estate plan in accordance with the state law. Once you have it finished, you will still have to revisit it. Unfortunately, it is a common misconception that you will never have to edit your estate plan barring big life changes. Today, we will look at some of the times you may want to update a plan.
Forbes dives into the many different reasons some may have to update their estate plan. Many of these reasons relate to big life events or changes. Familial and financial changes are two of the biggest. For financial changes, this can mean either positive gains or negative losses. For example, you will want to update your plan if you inherit a large sum of money. You will also want to update it if you fall into debt and file for bankruptcy. This way, the assets you are planning to divide can be accurate.
Familial changes involve changes to your family dynamics and structure. This can include more official changes like marriage, divorce, or adding a child to your family. It can also involve unofficial changes, such as a family member becoming estranged for whatever reason. In any of these situations, you may change who you want to inherit what.
Finally, it is important to note that you do not have to wait until a big life change to look over your estate plan again. In fact, it is a common misconception that only major life events are worth changing your estate plan for. In reality, you should update it every few years to ensure it is as accurate as possible.