When it comes to estate planning, it’s important to know how to keep your assets protected and ensure that valuable items or cash go to the intended parties. If you’re a Texas resident looking to make detailed plans for your estate, here are some ways to protect your assets when you experience significant life changes that may come with unexpected costs.
Getting divorced
Divorce can be overwhelming, and many people forget to make changes to their estate plan. It may be years before divorced individuals get around to taking care of certain estate planning tasks, which could mean that an ex receives an inheritance they weren’t supposed to.
When your divorce proceedings begin, you should ensure that your assets are protected in case the unexpected happens. This could include revoking your living will or power of attorney to ensure that your ex cannot make any financial decisions or update your life insurance policies on your behalf. When your divorce is final, it’s best to update your estate planning to coordinate with your new living situation, co-parenting arrangement or any other assets that will benefit your children.
Having a baby
The new child in your life deserves every effort to ensure they are financially cared for. As a parent, you can consider several estate planning tools, such as a living trust that contains funds to provide for your child in case of unexpected costs caused by serious injury, illness or death. You can also create a will that makes your wishes known concerning your child’s care.
These estate planning tips can make it easier for you to dictate your final wishes and ensure that your loved ones are properly cared for when you pass away. This helps to protect your estate so that only the people you indicate will receive money or assets from your estate.