Life is full of big changes—some exciting, others unexpected—but they all have the potential to impact your estate plan. Major life events, from marriage to financial changes, can alter your wishes, legal responsibilities, and asset distribution. Failing to review and update your estate documents accordingly might lead to state laws or outdated instructions determining the fate of your assets. Here’s when you should consider reviewing your estate plan:
Significant Change in Assets
Receiving a substantial inheritance, launching a new business, or facing financial difficulty can dramatically affect your estate planning goals. Each situation could shift your priorities regarding asset management and distribution, urging you to update your estate plan to reflect your new circumstances.
Becoming a Parent
Welcoming a child creates an ongoing need to ensure your children are financially protected. Updating your estate plan to designate clear guardianship roles and financial provisions is crucial for their future security.
Death of a Beneficiary or Executor
When someone named in your estate plan passes away, it’s crucial to update those designations. This ensures that your wishes are executed as intended and prevents the probate process from becoming unnecessarily complicated.
Getting Married or Divorced
Marriage significantly alters your legal and financial circumstances, potentially changing how you wish to distribute assets. Conversely, divorce demands swift action to modify your estate plan, removing unintended beneficiaries and preventing potential disputes.
Moving to a New State
Relocating to a different state necessitates a review of your estate plan since estate planning laws vary by state. Adjusting your will, trust, and other documents ensures compliance with local laws and aligns them with your current living circumstances.
Life's milestones can significantly impact your estate plans, but professional guidance can help navigate these changes smoothly. Consulting with an estate planning attorney about any concerns or questions ensures your estate plan remains current, comprehensive, and reflective of your desires.