How Major Life Events Shape Estate Planning

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 If you don’t review and update your estate documents accordingly, state laws or outdated instructions may determine what happens to your assets. Here are a few good times to review your estate plans.

Becoming a Parent

Welcoming a child into your life brings immense joy and new responsibilities. It’s crucial to ensure that your children are financially protected and that guardianship designations are clear in case of an emergency. Without these updates, the state could make decisions that may not align with your wishes.

Death of a Beneficiary or Executor

If someone named in your estate plan passes away, it’s essential to update your designations. This ensures that your wishes are still carried out as intended and avoids potential legal hurdles later on. Keeping your estate plan current honors the roles and legacies of those involved in your life.

A Significant Change in Assets

Receiving an inheritance, starting a business, or experiencing financial hardship are events that can significantly affect your estate planning goals. Such changes should spur a review and adjustment of your plan. This helps maintain alignment with your current financial landscape.

Getting Married or Divorced

Marriage changes legal and financial circumstances, potentially affecting how assets are distributed. On the other hand, divorce requires immediate updates to prevent unintended beneficiaries from inheriting your assets. It's critical to reflect these changes promptly in your estate plan.

Moving to a New State

Estate planning laws vary by state, so relocating may require updates to your will, trust, or other documents. Each state has different statutes that might influence how your estate transfers upon your passing, necessitating a comprehensive review whenever you change your residence.

Seeking professional estate planning guidance can help you navigate these changes smoothly. It's advisable to review your estate plan every three to five years or whenever a major life event occurs. Consulting with an estate planning attorney can address any questions or help tailor your plan to your current scenario, ensuring peace of mind for you and your loved ones.