How Life Events Impact Your Estate Plans

Life Changes That Can Alter Your Estate Plans

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 If you don’t review and update your estate documents accordingly, state laws or outdated instructions may take control of what happens to your assets. Here are important times when a review is crucial:

Moving to a New State

If you’ve relocated to another state, it’s important to revisit your estate plan. Estate planning laws can differ significantly from one state to another. Local regulations may affect your will, trust, or other documentation. Adjusting your documents to align with your new state’s laws ensures your wishes are respected.

Becoming a Parent

Welcoming a child into your family is an exciting event. It’s vital to ensure your children are financially protected, and guardianship provisions are clearly designated in your estate plan. This step provides peace of mind in case an emergency arises that prevents you from caring for them yourself.

Death of a Beneficiary or Executor

If someone named in your estate plan, whether a beneficiary or an executor, has passed away, it’s crucial to update your designations. Forgetting this step could cause confusion and potentially thwart your intentions about how your estate is managed and distributed.

Getting Married or Divorced

Marriage massively reshapes your legal and financial circumstances, affecting how assets are distributed. Conversely, a divorce necessitates immediate updates to your estate plan to prevent unintended beneficiaries, such as a former spouse, from inheriting your assets.

Divorce or Marriage of an Adult Child

The martial status of an adult child can affect how you may wish to distribute assets to your child at your death.  An outright distribution to a child in a troubled marriage could allow your child's spouse access to the funds.  

A Significant Change in Assets

Receiving an inheritance, launching a new business, or facing financial challenges signal the need to reassess your estate planning goals. These changes affect your asset distribution and could require updates to your current plan. Regular review and updates are essential as these life changes occur. It’s advisable to examine your estate plans every 3-5 years or whenever you experience a major life event. Consulting an estate planning attorney provides professional guidance to ensure your decisions reflect your current wishes. Knowing that your estate is in order gives a sense of security and readiness for whatever the future holds.