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 major life events 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 If you don’t review and update your estate documents accordingly, state laws or outdated instructions may determine what happens to your assets.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 good times to review your estate plan.
Becoming a Parent
Welcoming a child into your life is a joyous occasion, but it also requires careful planning to ensure your children are financially protected. Updating your estate plan can guarantee that guardianship designations are clear in case of an emergency, securing your children's future and peace of mind.
Death of a Beneficiary or Executor
Losing someone named in your estate plan is emotionally challenging, but it's crucial to update your designations promptly. This will ensure your wishes are still carried out as intended and prevent complications down the line.
Moving to a New State
Relocating can mean a change in your life, but also in your estate planning. Since estate laws vary by state, moving may require updates to your will, trust, or other important documents. It’s a small step that can make a big difference.
Getting Married or Divorced
Tying the knot or untying it are both significant events that change your legal and financial circumstances. Married couples may want to revise how their assets are distributed, while divorce necessitates immediate updates to prevent unintended beneficiaries from inheriting your assets.
A Significant Change in Assets
Whether you receive an inheritance, start a business, or face financial hardship, a change in assets can hugely affect your estate planning goals. It’s wise to adjust your plan to accurately reflect your new financial landscape.
Remember, seeking professional estate planning guidance can help you navigate these changes smoothly. It’s always a good idea to consult with an estate planning attorney if you have questions or want to discuss your situation further. Regular reviews, ideally every three to five years, or sooner if you experience any of these major life events, ensure your estate plan remains relevant and effective.