Many people assume you need to create a will, trust and everything else associated with an estate plan when you are older. However, people in their 20s really need to have an estate plan just in case.
There are times in life when it is good to create your estate plan. Most people craft a will shortly after marriage or when they come into significant assets. However, you do not want your estate plan to stay the same for decades. There are times in life when you will need to update it, and these are the most common life events to do so.
Birth of a child
You should create an estate plan after marriage so your spouse retains all your assets. However, after you have a child, you want to make sure he or she receives something. You and your spouse also need to decide on a guardianship plan for your child in the event both of you pass away before the child is 18.
You will naturally want to update your estate plan in the event of a divorce. You do not want to leave behind significant assets to a former spouse, especially if you have plans to remarry in the future.
Move to another state
Different states have different laws on how to create an estate plan. You may have created your first estate plan in New York, but you want to update it now that you live in Massachusetts. It simply ensures the state follows your plan exactly how you envisioned it.
Change in executors or trustees
Relationships change over time. You may have designated someone to be the executor of your estate, but the relationship may turn sour over the years. Friendships change, and you want to prepare your estate plan accordingly. You may also want to alter what your beneficiaries receive depending on what changes over the years.