How Life Events Can Change Your Estate Plan

Life’s Big Changes Demand Estate Plan Updates

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 If you don’t review and update your estate documents accordingly, state laws or outdated instructions may determine what happens to your assets.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 critical moments when you should review your estate plans.

Becoming a Parent

Welcoming a child into your life changes everything, including your estate plan. It’s crucial to ensure your children are financially protected and that guardianship designations are clear in case of an emergency. Consider setting up trusts or financial provisions to manage your children's inheritance responsibly until they are of age.

Moving to a New State

When you cross state lines, you bring your estate planning documents along. However, estate laws can differ significantly from one state to another. To ensure your will, trust, or other documents are legally sound, review and possibly revise them based on your new state’s laws.

A Significant Change in Assets

Whether you start a new business, receive an inheritance, or face financial hardship, changes in your asset portfolio should directly reflect in your estate plan. Adjust your plan accordingly to align with your current financial situation and objectives.

Getting Married or Divorced

Marriage brings about new legal and financial circumstances, impacting how assets are distributed. Conversely, a divorce requires immediate action to prevent unintended beneficiaries from inheriting your assets. Update your estate plan promptly to reflect your new marital status and intentions.

Death of a Beneficiary or Executor

Losing someone named in your estate plan necessitates changes to ensure your wishes are still carried out as intended. Review your documents and update your designations to maintain the integrity of your estate plan. Seeking professional estate planning guidance can help you navigate these changes smoothly. For peace of mind, review your estate plan at least every three to five years or after significant life events. Consulting with an estate planning attorney ensures your documents reflect your current situation and wishes, providing a safeguard for your future and those you care about.