
How Major Life Events Impact 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 If you don’t review and update your estate documents accordingly, state laws or outdated instructions may determine what happens to your assets. Below are some good times to review your estate plans.
Becoming a Parent
Welcoming a new family member is both thrilling and transformative. Ensure your children are financially protected, and guardianship designations are clear in case of an emergency. Updating your estate plan to accommodate these new responsibilities is crucial.
Moving to a New State
Relocating can bring a fresh start, but remember, estate planning laws vary by state. Whether it's your will, trust, or healthcare directives, moving to a new state may require updates to your documents to ensure they comply with local laws.
Getting Married or Divorced
Marriage changes your legal and financial circumstances, potentially affecting how assets are distributed. Similarly, divorce requires immediate updates to prevent unintended beneficiaries from inheriting your assets. Ensuring your estate plan reflects your current marital status is vital.
A Significant Change in Assets
A sudden increase or decrease in assets, whether through inheritance, starting a new business, or financial hardship, can affect your estate planning goals. Adjusting your plan to align with your new financial reality ensures that your intentions are fulfilled.
Death of a Beneficiary or Executor
If a person named in your estate plan passes away, update your designations to ensure your wishes are carried out as intended. This might include appointing a new executor or redistributing assets among remaining beneficiaries.
Professional estate planning guidance can help you navigate these changes smoothly. Consult with an estate planning attorney if you have questions or want to discuss your situation further.