Life is full of big changes—some exciting, some unexpected—but they all have the potential to impact your estate plan. From marriage to financial shifts, these life events can alter your wishes, legal responsibilities, and asset distribution. It's essential to review and update your estate documents accordingly. Otherwise, state laws or outdated instructions might determine what happens to your assets. Here are key times to review and possibly amend your estate plans.
Becoming a Parent
With parenthood comes the responsibility to ensure your children are financially protected. It’s crucial to update your estate plan to include clear guardianship designations and financial provisions for your children. This guarantees their security and your peace of mind in case of unforeseen circumstances.
Experiencing a Significant Change in Assets
Financial changes, such as receiving an inheritance, starting a business, or facing financial hardship, can significantly affect your estate planning goals. Adjusting your plan to align with your new financial landscape ensures your assets are distributed according to your wishes.
Moving to a New State
Estate planning laws vary from state to state. If you relocate, it’s important to review your will, trust, and other legal documents to ensure they comply with the laws of your new state. This step ensures your estate plan works as intended and provides protection under your current jurisdiction's legal framework.
Getting Married or Divorced
Marriage changes legal and financial circumstances and can affect how your assets are distributed. On the other hand, divorce necessitates immediate updates to prevent unintended beneficiaries from inheriting your property. Updating your estate plan ensures your assets are allocated according to your new situation.
Death of a Beneficiary or Executor
If someone named in your estate plan passes away, it’s vital to update your designations to ensure your wishes are still carried out as intended. This helps avoid confusion and ensures your legacy is managed and distributed as you desire.
For every major life event, consulting with an estate planning attorney can provide invaluable guidance to navigate these changes smoothly. Regularly reviewing your estate plan—experts suggest every three to five years—is a proactive step to ensure it aligns with your current life circumstances. Reach out to a professional if you have questions or need to discuss your specific situation further.
