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Your estate plan isn’t something you create once and forget about. Life changes — sometimes in big, unexpected ways — and your plan should evolve along with it. Major life events like marriage, the birth of a grandchild, or even a shift in your financial situation can all impact how you wish your assets to be distributed and how you can best protect your family.
To protect your family and hard-earned assets, it’s important to review and update your estate plan regularly. Here are 5 life events that should cause you to reach out to an estate planning attorney to review your will and trust:
1. Marriage or Divorce
If you’re committing your life to someone, you’ll need to include your new spouse in your estate plan. Ensure that assets and objects you want to go to your spouse are explicitly named to them, and make certain that your children are provided for as well. You’ll need to set up your spouse to be cared for in the event of your death, but also ensure that your entire estate does not fall to their ownership, leaving your children with nothing.
It’s common for both spouses in a second marriage to have children of their own. If your new spouse has children, you may want to set your estate plan to leave a portion of your assets to them, or you may want your legacy to only go to your biological children. Your wishes should be made explicitly clear in your estate plan.
If your marriage is coming to an end, your estate plan should change to verify that assets, real estate, and vehicles that are under your ownership do not default to your ex spouse after your death. These may be named to your children, grandchildren, a close friend, or even an organization you wish to support.
2. Birth of a Grandchild
Welcoming a new member of your family is an exciting, joyful time. However, it’s also a time to ensure your estate plan includes your new grandchild.
Many estate plans include clauses to either give a portion of your estate directly to your grandchildren, or to have your adult child’s portion split between their children if they pass before you do. Upon your grandchild’s birth, update your plan to explicitly include the new baby in your wishes, and make certain all the loved ones you want to provide for are considered.
3. A Diagnosis, Hospital Stay, or Health Issue
If you or your spouse experiences serious health issues, or a sudden worsening of your health overall, it’s essential to revisit your estate plan’s healthcare directives. A power of attorney (POA), which should always be included in an estate plan, can enable your family to access funds to pay for your health care if you are incapacitated. Your POA can also ensure your insurance, housing costs, and light bills are taken care of during your hospitalization. You may also wish to put in place a Do Not Resuscitate or Resuscitate order, and make explicit your wishes for your funeral.
4. Approaching Retirement, or a Major Change in Assets or Financial Situation
It’s important to ensure your estate plan works together with your financial plan.
If you are within ten, five, or one years of retirement, you should review both your financial and estate plan to ensure that you are financially prepared and your investment mix contains the appropriate level of risk. After your financial plan has been rebalanced, if necessary, your estate plan should update to reflect any new accounts opened or closed and to ensure your loved ones would be protected in the event of your death.
If you have received an inheritance, sold a home or business, or experienced a major gain or loss in the stock market, ensure your new assets are included in your estate plan. At minimum, your assets should have a beneficiary named to avoid confusion and difficulty after your death. You should verify that the amounts and types of assets assigned to each of your loved ones are sufficient and will serve their best needs. This may be the right time to explore a trust, as any of the new assets not included in a trust will need to go through the slow, expensive process of probate.
5. Automatically, Every Three to Five Years
Each state’s laws, and your current circumstances, can quietly shift over time in ways that affect your estate plan without you realizing it. Tax regulations, inheritance laws, or even state residency rules can change, altering how your assets would be handled if something happened to you. Your personal goals, relationships, or financial situation may evolve in ways your original plan no longer reflects. Reviewing your estate plan every three to five years helps make certain it remains legally sound, up to date, and in keeping with your current wishes.Updating your estate plan means ensuring your loved ones are cared for and your wishes are honored. Life is full of changes, both expected and unexpected, and reviewing your plan regularly helps prevent unnecessary expenses, confusion, legal complications, and stress for your family. By staying proactive and consulting an experienced estate planning attorney when these key life events occur, you can have confidence that your estate plan remains up to date, legally sound, and aligned with your current goals.Life doesn’t stand still. Your estate plan shouldn’t either. Care by Oath is our exclusive estate plan maintenance program designed to keep your plan current as your life, family, and assets evolve. Care clients can update their estate plan at their convenience and as major life events occur without hourly fees, saving thousands of dollars in fees.
If you have experienced one of the events we’ve discussed or if you can’t remember when you last updated your estate plan, Oath is here to help. Schedule a 30-minute Estate Planning Discovery Call today. We’ll help you fill in the gaps in your plan and ensure your loved ones will be cared for after you pass.
Disclaimer: This blogpost provides general information about estate and financial planning and is not intended as legal or financial advice. It’s essential to consult with a qualified estate planning attorney and financial advisor to discuss your specific needs and create a plan that’s right for you.
