Ensuring Your Estate Plan Reflects Changes in Your Life Circumstances

Life is a journey full of milestones and changes. Your estate plan, the way you will carry out your wishes after you are gone, should not be a permanent document. Here’s a breakdown of major life events that highlight the importance of going back and reviewing your estate plan:

Marriage (or remarriage):

1. Beneficiary Spouse: Marriage creates a new spouse who can be an automatic beneficiary of your estate depending on the laws of your state. As a result, check your plan to make sure your partner is included according to your wishes.
2. Beneficiary Designation: Check the beneficiary designation for retirement accounts, life insurance policies, and payment on death (POD) savings accounts. Consequently, You may want to update them to include your partner.

Births, adoptions, or grandchildren:

1. New Heirs: Children and grandchildren and natural heirs. Update your policy to include and outline parenting requirements for minor children in the event of your death.
2. Trust modifications: If you have a trust, consider adding a provision for distributing assets to your children or grandchildren at a certain age or under certain circumstances.

Divorce:

1. Spouse Removal: After a divorce, you may want to remove your ex-spouse from your estate plan and as the beneficiary of any money you hold jointly.

Death of Beneficiary:

1. Change of Beneficiary: If the previously named beneficiary has passed away, you will need to appoint an immediate beneficiary to receive the property specified.

Property Changes:

1. Accurate Considerations: Your estate plan should accurately reflect your current assets. Buying a new home, selling an investment, or acquiring a property may require updating your plan to reflect current assumptions.

Changes in health:

1. Incapacity planning: Consider taking out a power of attorney in the event you become incapacitated. Also, hiring a healthcare proxy to make medical decisions on your behalf.

Regular inspections are key to:

1. Updated Schedule: Don’t wait for a major life event. Plan to regularly review your estate plan every 3-5 years or whenever your circumstances change dramatically.

Get expert guidance:

1. Legal skills: Estate planning can be complicated. Therefore, consulting with an experienced estate planning attorney can ensure that your plan meets legal requirements and properly reflects your wishes.

By updating your estate plans at important life milestones, you can give your loved ones peace of mind knowing that they will be cared for the way they want after you are gone.

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