When it comes to estate planning, you do not want to plan once and then never look at your plan again. Instead, your estate plan needs to grow and change as you grow and change. According to Forbes, there are ways to tell if you need a modified estate plan.
Estate plans needs to change with every major life event.
Do you have children or grandchildren?
Children and grandchildren are game-changers. If you have adult children, you need to consider their personalities in your estate plan. An estate plan can protect an irresponsible adult from his or her own financial decisions. For instance, if you have a child who overspends, who has credit problems, you can restrict the trust to ensure he or she does not receive a lump sum of money.
If your children had children of their own, then you may want to include grandchildren too. Whether you want to help with college or other expenses, you need to prepare in advance.
Have you undergone life changes?
Your estate plan should change and grow with you. At the age of twenty your plan is going to look different than what it will look like later in life. As a young person, you may leave your assets to your siblings with a simple will. If you marry, then you may leave provisions for your new spouse. As your income increases, as you accumulate more assets, you will need to address this with your estate plan. As your estate grows, for instance, you will have estate taxes that you should address.