Life is full of changes, and with those changes come new responsibilities and considerations, especially when it comes to your estate plan. Whether you are experiencing the joys of marriage, the excitement of welcoming a new child, the challenges of divorce, or the grief of losing a loved one, it is crucial to ensure your estate plan reflects your evolving life circumstances and wishes. Let's explore some key life events that necessitate an immediate update to your estate plan.
Marriage. Getting married is a significant milestone, often filled with joy and new beginnings. While updating emergency contacts and adding your spouse to health insurance policies might be on your list, revisiting your estate plan should also be a priority. Your money and property may not automatically transfer to your spouse upon your death, especially if you have children from a previous marriage or a marital agreement in place. A thorough review of your estate plan can provide peace of mind for you and your new spouse.
Birth or adoption of a child. The arrival of a child is a transformative life event that brings with it many changes. Not only will your life have to evolve to accommodate your new addition, but your estate plan should, too. It is essential to update your will or trust to include your child as a beneficiary. You should also implement a plan for what you would like to happen if you are unable to care for your child and how you would like them to receive any sort of inheritance. As children grow, their needs and circumstances change, so your estate plan should provide flexibility to adjust accordingly. What seems appropriate for a young child may need reevaluation as they reach adulthood.
Divorce. The end of a marriage is a challenging time, and it brings about necessary legal updates. State and federal laws may automatically remove a former spouse from inheriting your money and property, but this is not always guaranteed. You should immediately update beneficiary designations on life insurance policies and retirement accounts, revise any powers of attorney, and update your will and trust to reflect your new wishes. Tread carefully when making changes to your estate plan while the divorce is still pending, however. Your state’s law or any court orders in place may restrict your ability to make changes to the distribution of financial assets until the divorce is finalized.
Death of a loved one. Losing someone close to you is never easy and can often be overwhelming. If a person named in your estate plan passes away, it is imperative to review your plan. If your loved one held any decision-making roles in your plan, it is important that you make updates to reflect your new first choice and let that individual know that they may be called upon in the future. Ensuring these roles are filled by trusted individuals is essential to carrying out your wishes and for your peace of mind.
Significant change in what you own. Major changes in your financial situation, such as a significant salary increase, receipt of an inheritance, or purchase of more valuable property, should prompt a review of your estate plan. Owning more accounts and property can lead to more complex issues and additional considerations regarding who will receive them at your death and how inheritances should be structured. It is wise to assess and update your plan to address these changes appropriately and ensure you are not overlooking important issues such as potential tax implications or asset protection for your beneficiaries.
A move to a new state or country. Each state and country has its own estate planning laws. It is essential that you meet with an attorney in your new state or country to ensure your existing documents comply with local laws or to have new documents prepared. If you own accounts and property in multiple countries or live abroad, professional assistance is crucial to navigating the complexities of international estate planning.
We understand that life is constantly changing. Keeping your estate plan up-to-date is vital to protect yourself and your loved ones. We are here to help you navigate these changes and ensure your estate plan reflects your current circumstances. Please call our office to schedule an appointment today.
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