Reasons to Update Your Estate Plan

Life is dynamic, and as circumstances change, your estate plan should evolve accordingly. This ensures your assets are distributed as you intend and that your loved ones are provided for. This blog post explores various reasons to update your estate plan.

New Children

Welcoming new additions to your family, whether through birth or adoption, is a joyous occasion. However, it also means that you need to adjust your estate plan to accommodate them. This includes appointing legal guardians for your children in case both parents pass away, establishing trusts to manage their inheritance, and specifying how assets should be distributed among all your heirs.

Children Becoming Adults

As your children grow and reach adulthood, their financial needs and responsibilities change. You might want to reconsider the distribution of assets to provide for their education, a first home, or to support them in starting their careers. Additionally, you may want to involve them in the decision-making process and appoint them as executors or trustees if they are mature enough.

Getting Married or Remarried

Marriage is a major life change that usually leads to the update of your estate plan. When you get married or remarried, you may want to include your spouse as a beneficiary, update your will, or create a prenuptial agreement to clarify the distribution of assets in case of divorce or death. This ensures that your spouse is financially secure and that your assets are distributed as you intend.

Financial Status Changes

Substantial changes in your financial situation, such as a significant increase in assets or income, can warrant revisions to your estate plan. You might want to explore advanced estate planning strategies to minimize taxes or establish charitable trusts to support causes you are passionate about.

Conversely, if your financial situation deteriorates, you may need to adjust your plan to ensure that your loved ones are still provided for.

Divorce or Separation

Going through a divorce or separation is a challenging time, and it is essential to update your estate plan to reflect your new circumstances. This typically involves removing your former spouse as a beneficiary, updating your will, and modifying your power of attorney and healthcare directives.

If you don't make these updates, unintended consequences can happen. For instance, your ex-spouse can inherit the assets that you wanted to leave for someone else.

Moved Out of State

When you relocate to a different state, it's important to review your estate plan because estate planning laws can vary significantly from one state to another. Certain documents and strategies that were valid in your previous state may not be recognized in your new state. You'll need to ensure that your will, trusts, and other legal documents comply with the laws of your current state of residence.

Health Changes

Updating your estate plan is essential when there are significant changes in your health status. This can include the diagnosis of a serious illness or a decline in your overall health. In such situations, you'll want to review and possibly modify your healthcare directives, living will, and power of attorney documents.

For instance, you may need to appoint a different healthcare proxy if your previously chosen individual is no longer available or suitable. You may also want to provide updated instructions regarding your medical treatment preferences, especially if your views on life-sustaining measures have evolved.

Changes in Your Inheritor's Financial Situation 

Your estate plan should reflect the financial circumstances of your beneficiaries or heirs. If their financial situations have significantly changed, it's wise to revisit your plan.

Life is filled with changes, and your estate plan should evolve to reflect these transitions. In any of these cases, consulting with Lifetime Estate is advisable. We will help you navigate the legal intricacies and make the necessary adjustments to your plan. Contact us to book an appointment.