How Life's Big Moments 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. Without regular updates, state laws or outdated instructions might decide what happens to your assets. These five key events are prime opportunities to review and update your estate plan.

Moving to a New State

Relocating across state lines can affect your estate plan because estate planning laws differ from state to state. Whether it’s a new job, a better climate, or being closer to family, moving could require changes to your will, trust, or other legal documents. Consulting with an attorney familiar with your new state’s laws can ensure your plan remains valid and effective.

Becoming a Parent

Welcoming a new child is a joyous occasion, but it also calls for careful planning. It’s essential to ensure your children are financially protected and have clear guardianship designations in case of an emergency. Updating your estate plan can help safeguard your child’s future by establishing trusts or choosing guardians who align with your parenting values.

A Significant Change in Assets

Financial shifts, whether through an inheritance, business startup, or economic hardship, can influence your estate planning goals. Significant asset changes might necessitate setting up new trusts or reallocating resources to reflect your current financial situation. It’s wise to adjust your estate plan promptly to align with these changes.

Getting Married or Divorced

Tying the knot brings exciting changes and new shared financial responsibilities, potentially affecting asset distribution. Conversely, divorce requires immediate updates to prevent unintended beneficiaries from inheriting your assets. Ensuring your estate documents reflect your current marital status helps avoid confusion and preserves your wishes.

Death of a Beneficiary or Executor

If someone you've named in your estate plan passes away, it’s crucial to update your designations. Whether it’s a beneficiary or an executor, keeping these choices current ensures your estate is handled as you intend. Revisiting your estate plan can provide peace of mind that everything is set according to your wishes.

Reviewing your estate plan every few years, or after any major life event, helps maintain its relevance and efficacy. Seeking professional estate planning guidance ensures you’re making informed decisions. Consulting with an estate planning attorney can help navigate these changes smoothly, providing you confidence and security for the future.