How Major Life Events Affect Your Estate Plan

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 If you don’t review and update your estate documents accordingly, state laws or outdated instructions may determine the outcome regarding your assets. Here are key life events that signal a need for examining your estate plan.

Death of a Beneficiary or Executor

When someone named in your estate plan passes away, it's crucial to update your designations. If a beneficiary or executor dies, your estate plan may no longer align with your wishes, leading to unplanned outcomes. Ensuring the right people are designated helps maintain control over how your wishes are carried out.

Becoming a Parent

A new addition to the family brings immense joy and a slew of new responsibilities. Updating your estate plan to ensure your children are financially protected is vital. Clearly designating guardianship is essential in planning for unforeseen emergencies, ensuring your child's future is secure.

Moving to a New State

Relocating can bring about significant changes in your estate planning needs. Since estate planning laws vary by state, you may need to update your will, trust, or other documents to comply with your new home state's laws. Ensuring your estate plan reflects local regulations helps avoid potential legal challenges down the road.

Getting Married or Divorced

Marriage and divorce significantly affect your legal and financial standing, influencing asset distribution. After marriage, updating your estate plan is crucial for including your spouse. On the other hand, divorce necessitates immediate revisions to prevent unintended beneficiaries from inheriting your assets.

A Significant Change in Assets

Changes like receiving an inheritance, starting a business, or even experiencing financial hardship warrant a review of your estate plan. Altering your plan to reflect your current financial situation ensures that your estate planning goals remain aligned with your wishes.

It's advisable to review your estate plan regularly, typically every three to five years, or whenever a major life event occurs. Drawing professional guidance from an estate planning attorney can help navigate these changes smoothly. If you have questions or wish to discuss your situation further, consulting with an expert ensures your estate plan remains effective and up-to-date.