9 Major Life Events That Should Cue an Estate Plan Review

While many people put off estate planning discussions, getting ahead of these things within your life can provide peace of mind and help reduce challenges when it comes time for estate administration. In fact, estate planning at an early age puts you in better control of your future and allows you to enjoy all that life has to offer with greater peace of mind at any age.

However, if you do invest in estate planning early in life, it is a good idea to know what type of major life events should bring you back to those thoughts. Marriage, divorce, and other life events can change your estate plans, but those changes are not effective until you make them in your estate documents.

1. A Death

If someone in your family—or anyone listed in your estate plans—passes away before you do, you may need to make some changes. For example, if the person you named as your personal representative dies, choosing an executor to replace them can be important. You might need to talk to your attorney about amending your will.

Other common needs that arise when someone passes away include restructuring your beneficiaries and how you leave assets to them or naming a different guardian for minor children if you had previously named that person.

2. A Birth or Adoption

When a new child is added to the family, it can cause a need to review estate plans. You might want to change your beneficiary lists or otherwise ensure that this child—however they are related to you—is taken care of or receives some sort of inheritance.

3. A Marriage

Marriage also adds a person into your family tree—along with a new legal relationship that can impact inheritances. For example, if you have adult children and you get remarried later in life, your spouse may have automatic rights to certain assets without careful estate planning to ensure your adult children maintain their rights. Or, if one of your potential heirs gets married, their spouse could claim a right to their inheritance if it is not properly protected.

4. A Divorce

Divorce undoes the marriage relationship, but it does not always undo your estate plans. You may need to review wills, trusts, or other estate documents and amend them to account for a divorce among your heirs.

5. A Major Move

One way a major move can impact estate plans is that you might have sold off property—such as a home—as part of the move. You might want to review estate plans if the property in question played an important role in them.

If you move out of state, you should work with an estate attorney in your new location to ensure your will and other documents are valid under the new state’s laws.

6. A Substantial Health Issue

If you or your spouse are diagnosed with a substantial health issue such as a chronic or terminal illness, your estate plans may change.

This is a good time to talk to a lawyer about life care planning too, as you may need to act quickly and proactively to secure assets while positioning yourself to receive government benefits if necessary.

7. A Change in Business Ownership

Many people do not realize that their business ownership status is a critical consideration for estate planning. Any business you own or are a partner in is a valuable asset, and you may want to protect it for the future and set up a succession plan to pass it on to someone else. If you start a new business or buy one, you should review your estate plan and talk to a lawyer about how your new asset might change it. The same is true if you sell a business.

8. An Inheritance

Many times, people inherit from others before they leave an inheritance to their loved ones. If you receive a large inheritance—or any other asset or cash infusion, such as a major gift, a loitering winning, or a settlement payout—consider talking to your estate attorney about how to protect those assets and whether you should make changes to your wills, trusts, or other estate plans.

9. A Change in Law

Finally, a change in federal or state law that impacts your future financial or estate plans can necessitate a review and amendment of your plan. That includes major changes to estate tax or gift tax laws.

It can be difficult to keep up with all the types of things you should consider, and no one wants to constantly count up their life and evaluate it against estate considerations. Instead, consider working with an experienced estate planning lawyer. Your attorney can notify you if there are changes in the law that might need your attention, and you can meet with them periodically to review your plans and let them know of any major changes in your life.

If you want to get started with estate plans or believe there may be some reason to amend plans you already have, the team at Bratton Law Group can help. Give our team a call at 856-770-2744 to find out more about our services and set up an appointment.