How to Update Your Estate Plan After a Major Life Event
Life is full of surprises, some good and some not-so-good.
Whether celebrating a new marriage, welcoming a new baby, or grieving a loss, you might wonder how these major life events affect the plans for your estate. After all, it’s natural to want to ensure that your loved ones are taken care of and that your wishes are respected in case something happens to you.
This is where a comprehensive estate plan comes into play.
An estate plan is a set of legal documents outlining how you want your assets, debts, and personal affairs handled when you die or become incapacitated. A typical estate plan includes a will, a trust, a living will, a power of attorney, and healthcare directives.
However, your estate plan is not a one-time deal. It's a living document that should reflect your current situation and goals. If you don't update your estate plan after a major life event, you might end up with unintended consequences, like your assets going to the wrong people or
your beneficiaries facing delays, disputes, or legal challenges in accessing your estate.
To avoid these scenarios, you should review and update your estate plan after any major life event that changes your family, finances, health, or preferences. Major life events include — but aren’t limited to — the following:
● Getting married or divorced
● Having or adopting a child
● Losing a spouse, child, or other beneficiary
● Moving to a different state or country
● Buying or selling a home or business
● Receiving a large inheritance or gift
● Winning the lottery or hitting a financial setback
● Developing a serious illness or disability
● Changing your mind about your end-of-life or legacy wishes
How To Update Your Plan
It’s always advised to consult with your attorney when updating legal documents, but the following steps are relatively standard regarding estate plan updates.
1. Review your existing estate plan.
Look at your will, trust, living will, power of attorney, and healthcare directives. Do they still match your situation and goals? Do they name the right people as your beneficiaries, executors, trustees, agents, and guardians? Do they address any special needs or circumstances of your loved ones? Do they comply with the laws of your current state or country?
2. Make any necessary changes.
If you need to make any changes to your estate plan, you can either amend your existing documents or create new ones. Depending on the type and extent of the changes, you should consult a lawyer, a financial planner, a tax advisor, or a life insurance agent.
Some changes require the consent or notification of your beneficiaries, executors, trustees, agents, or guardians. Follow the proper legal formalities and procedures to make your changes valid and enforceable.
3. Store and share your updated estate plan.
Store your plan in a safe and accessible place, like a fireproof safe or bank deposit box.
You should also share your updated estate plan with your loved ones and trusted advisors, such as your spouse, children, parents, siblings, friends, lawyer, financial planner, tax advisor, and life insurance agent. This way, they will know where to find your estate plan and what to do in case of an emergency or your death.
Keeping your estate plan current and relevant ensures your wishes are honored, and your legacy lives on. Feel free to contact us if you need any help or guidance with updating your estate plan. We’d love to help you with your estate planning needs!