Life is full of big changes—some exciting, some unexpected—but they all have the potential to impact your estate plan. Whether it's tying the knot, moving states, or experiencing a financial windfall, each significant event in your life may alter your wishes, legal responsibilities, or how your assets should be distributed. If you ignore these changes, outdated instructions or state laws may dictate who inherits your assets and how. Here are some pivotal moments when you should consider revisiting your estate plan.
Becoming a Parent
Welcoming a child into your life is exhilarating, but it also introduces new responsibilities. Ensuring your children are financially protected is crucial. Updating your estate plan to include guardianship designations ensures that, in case of an emergency, someone you trust will care for your children. Consider also setting up a trust to provide for your child's financial future.
A Significant Change in Assets
Whether you've received an inheritance, started a new business, or navigated through financial difficulties, these changes can deeply impact your estate plans. For instance, acquiring new assets like a business may lead you to reconsider how your wealth is distributed among beneficiaries. Regular updates ensure that your estate plan aligns with your current financial landscape and goals.
Getting Married or Divorced
A new marriage fundamentally changes legal and financial dynamics, influencing how you wish your assets to be allocated. Conversely, divorce necessitates prompt adjustments to your estate documents to prevent unintended beneficiaries from receiving your wealth. Without these updates, an ex-spouse could mistakenly remain a beneficiary.
Death of a Beneficiary or Executor
The passing of someone named in your estate plan might mean more than just a loss. It may leave parts of your estate without a dedicated executor or beneficiary. A timely revision of your designations ensures that your wishes will continue to be honored without oversight.
Moving to a New State
Relocating can be both exciting and daunting. It's important to know that estate planning laws vary from state to state. When you move, review your will, trust, and other documents to comply with the new state's laws. Failing to do so may result in unintended legal complications.
It's wise to review your estate plan every few years, or immediately following any major life event, to ensure it still reflects your wishes and complies with current laws. Navigating these changes can be complex, but seeking guidance from a professional estate planning attorney can bring clarity and peace of mind. When you're ready to discuss your estate planning needs further or have specific questions, consulting with a qualified attorney will help you steer through these life changes smoothly and confidently.