Life is full of big changes—some exciting, some unexpected—but they all have the potential to impact your estate plan. Major life events, from marriage to financial shifts, can alter your wishes, legal responsibilities, and asset distribution. If you don’t review and update your estate documents accordingly, state laws or outdated instructions may determine what happens to your assets. Here are some key moments when you should revisit your estate plans:
Death of a Beneficiary or Executor
Losing someone who plays a crucial role in your estate plan, like a beneficiary or executor, is a heartbreaking moment. It's important to ensure that your current designations still reflect your wishes. Failing to update your estate plans after such events can lead to unintended distributions or administrative complications.
Getting Married or Divorced
Marriage changes your legal and financial circumstances, which naturally affects how your assets are distributed. Conversely, divorce requires immediate updates to your estate plan to prevent unintended beneficiaries from inheriting your assets. Without these adjustments, you may inadvertently leave assets to an ex-spouse or leave out a new partner.
Becoming a Parent
Welcoming a child into your life is a monumental event that requires ensuring they are financially protected. It's vital to clarify guardianship designations in case of an emergency. Without these updates, you could leave your children without a clear plan for their care and financial security.
Moving to a New State
Relocating can have significant implications for your estate plan, as estate laws vary by state. It’s crucial to review and potentially update your will, trust, and other documents to ensure they comply with local regulations. Without these revisions, your estate plan might not be enforceable, posing risks to your wishes being carried out.
A Significant Change in Assets
A financial windfall, hardship, or major asset acquisition necessitates a review of your estate plan. Starting a business, receiving an inheritance, or encountering financial difficulty can all shift your estate planning goals. Aligning your estate plan with your current financial status ensures your assets are distributed according to your desires.
It's advisable to review your estate plan every few years or after major life changes. Seeking professional estate planning guidance can help you navigate these changes smoothly. If you have questions or want to discuss your situation further, consulting with an estate planning attorney is a smart step.
