Life is full of changes, and those changes often mean it’s time to revisit your estate plan. Whether you’re just beginning your estate planning journey or need to update an existing plan, these key moments highlight when it’s a good time to reassess your estate plan:
Major Life Events
Life events often bring significant changes that require a reassessment of your estate plan. These milestones may alter your financial or legal responsibilities, which is why it’s a good idea to ensure your estate plan reflects your current circumstances.
- Marriage or Divorce: Tying the knot or separating from a spouse significantly changes your legal obligations. Upon marriage, you may want to ensure your spouse is a primary beneficiary or make arrangements for shared assets. Conversely, after a divorce, updating your will and removing an ex-spouse as a beneficiary or executor is vital to prevent unintended asset distribution.
- Birth of a Child: The arrival of a child is one of the most important moments to update your estate plan. You’ll want to nominate guardians to care for your children if you pass away unexpectedly and ensure they’re financially provided for. Additionally, it may be worth setting up trusts to manage their inheritance until they reach adulthood.
- Blended Families: If you remarry and have children from previous relationships, ensuring fair and clear asset division becomes essential. Without clear instructions, conflicts between children and stepchildren can arise. Estate planning can clarify your intentions, ensuring each family member receives what you intend.
- Loss of a Loved One: If a beneficiary or executor in your estate plan passes away, you’ll need to update your plan accordingly to reflect a new executor or redistribute assets.
Financial Changes
Changes in your financial situation require careful reconsideration of your estate plan to ensure your wealth and assets are distributed according to your wishes.
- Starting or Selling a Business: Business ownership adds complexity to your estate, as you must account for succession planning or asset allocation if you pass away. Whether you’re passing your business to heirs or preparing for a sale, an updated estate plan ensures smooth business continuity.
- Buying Property: Real estate, whether it’s your home or an investment property, adds significant value to your estate. You’ll want to ensure your estate plan includes provisions for what happens to these assets and how they’re distributed to your beneficiaries.
- Receiving an Inheritance: A large inheritance can substantially alter your financial picture, which may prompt you to reconsider how your assets are distributed. You may want to set up trusts or other financial structures to manage this wealth effectively.
Health Changes
Health changes, whether yours or a loved one’s, can dramatically alter your estate planning needs, especially regarding long-term care and management of assets.
- Serious Illness or Disability: A serious diagnosis may require adding provisions for medical power of attorney, living wills, or instructions for end-of-life care. Similarly, if a beneficiary becomes disabled, a trust can be established to help ensure long-term financial support while ensuring their government benefits are protected.
- Planning for Elderly Care: As you age, it’s wise to update your estate plan to include your wishes regarding medical treatment, guardianship, and power of attorney. Additionally, you may want to plan for how your assets will be managed if you’re no longer able to do so yourself.
Other Significant Life Events
There are a few additional events that may warrant a review of your estate plan:
- Changes in Family Dynamics: If relationships with certain beneficiaries change (such as estrangement from a child or a reconciliation), you may need to revise who will inherit your assets or how they’re divided.
- Grandchildren or New Dependents: As your family grows, you may want to update your estate plan to include provisions for grandchildren or other new dependents, ensuring they are financially cared for in the future.
How Couldwell Legal Can Assist
At Couldwell Legal, we are passionate about helping individuals and families create and update estate plans that reflect their unique circumstances and goals. Whether you’re building an estate plan from scratch or making adjustments due to life changes, we offer flexible mobile services.
Our team can meet with you via video conferencing or in the comfort of your home or other mutually convenient location, making the process as convenient as possible. Let us guide you through securing your legacy and ensuring the protection of your loved ones.
Disclaimer: The content of this post is for general informational purposes only and should not be considered as legal advice. Readers are advised to consult with a qualified legal practitioner to obtain legal guidance specific to you.