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 If you don’t review and update your estate documents accordingly, state laws or outdated instructions may determine what happens to your assets.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 key moments when it's important to review your estate plan:
Moving to a New State
Relocating involves more than just packing boxes—it requires a fresh look at your estate plan too. Estate planning laws vary significantly from state to state. Therefore, moving might necessitate updates to your will, trust, or other legal documents to ensure they remain valid and enforceable.
Becoming a Parent
The arrival of a child transforms your world and your estate planning needs. Make sure your children are financially protected and that guardianship designations are clearly outlined in case of an emergency. This ensures that someone you trust will look after your children should anything happen to you.
Getting Married or Divorced
Marriage significantly changes your legal and financial circumstances. It often affects how your assets are distributed. On the flip side, if you're going through a divorce, it's crucial to update your estate plan immediately to prevent unintended beneficiaries from inheriting your assets.
A Significant Change in Assets
Life's financial ebb and flow—whether it's receiving an inheritance, starting a business, or facing financial hardship—can influence your estate planning goals. It’s important to adjust your plan to reflect these new realities and objectives.
Death of a Beneficiary or Executor
Death is a difficult event, but it also acts as a crucial trigger to revisit your estate plan. If someone named in your estate plan passes away, whether a beneficiary or executor, you’ll need to update your designations to ensure your intentions are fulfilled as you envisioned.
It’s advisable to review your estate plan every three to five years or whenever significant life events occur. While tackling these topics can seem overwhelming, seeking professional estate planning guidance can help you navigate these changes smoothly. Consulting with an estate planning attorney can offer clarity and peace of mind, ensuring that your estate plan always aligns with your current situation and wishes.