Regardless of the size of your estate, you can benefit from having an estate plan in place. Estate planning lets your wishes about your assets and health be known and respected when you become incapacitated or die. Also, it relieves the chaos, stress, and confusion for your loved ones as they try to determine your wishes.
But even after you complete your estate planning documents, you must review and reevaluate them when life-changing events take place. Estate planning documents that an attorney from The Ebbert Law Firm can help you craft include a will, trust, health care advance directive, and power of attorney. The following are life events that can trigger an estate plan review and update:
Marriage
When a couple gets married, they must discuss the financial landscape and wishes in terms of asset distribution of every person. Both spouses must take steps to make sure their estate planning documents reflect their needs and wishes like changing their trustee, power of attorney, beneficiary, and more to include the new spouse.
Marriage changes the couple’s relationships and legal status. Following marriage, the most pressuring concerns a couple may face include naming the new spouse as an insurance and retirement account beneficiary, giving the spouse medical power of attorney or durable power of attorney, and adding the new spouse to the will or trust.
Divorce
Divorce can be an overwhelming life event, so estate planning can get overshadowed by other major changes taking place. However, not updating an estate plan following a divorce can lead to devastating consequences.
When divorce proceedings begin, you must make your soon-to-be-ex ineligible to get your assets or make medical and financial decisions for you, unless this is what you want. After the finality of your divorce and distribution of property, you must adjust your plan to match your current living situation and asset profile.
Childbirth or Adoption
The addition of a new family member demands new levels of estate planning and responsibility. Firstly, you need to name a guardian for your minor child. Then, you should think about setting up a trust for your child. By planning trusts, your child benefits from the assets held in them. Consult with an estate planning attorney to determine the right planning strategy that best suits your family.
Death
A loved one’s death can significantly affect your estate plan and life. If you included the deceased in your estate plan, update it accordingly. You must address all voids created by the death including naming a new beneficiary, guardian, or executor and identifying new heirs to get the assets allocated to the dead loved one.
Serious Injury or Terminal Illness
Injury and illness are inevitable parts of life. If you have a severe illness or have been seriously injured in an accident, review the individuals you have selected to manage your healthcare decisions and how such decisions must be made. With time, your chosen healthcare proxy can change, so ensure your estate plan reflects your current desires.
Relocation
Estate planning laws tend to vary by state. If you relocate to another state, you must review and potentially revise your estate plan to ensure compliance with the legal requirements of your house new. Some of such laws are complex, so speak with a lawyer to ensure your plan still works the way you want in your new place.
Changes in Assets and Liabilities
When the value of your significantly increases or decreases, review your plan to make sure you and your family members are fully protected and get maximum benefits. Whether you take out a loan, get an inheritance, change your investment portfolio, or close a business, adjust your estate plan accordingly.
