How Life Events Affect Your Estate Plan

Life is full of big changes—some exciting, some unexpected—but they all have the potential to impact your estate plan. Major life events, such as marriage, financial shifts, or moving to a new state, can alter your wishes, legal responsibilities, and asset distribution. If you don’t review and update your estate documents accordingly, outdated instructions or state laws may end up determining what happens to your assets.

Becoming a Parent

Welcoming a child into your family is a momentous occasion. It's vital to ensure your children are financially protected and that guardianship designations are clear in case of an emergency. Without these updates, your wishes about who will care for your children may not be honored.

Moving to a New State

Relocating can be an exciting adventure, but it also means navigating different estate planning laws that vary by state. Ensure your will, trust, or other documents comply with your new residence's regulations to safeguard your estate plan's effectiveness.

Getting Married or Divorced

Marriage significantly changes legal and financial circumstances, often affecting how your assets will be distributed. On the flip side, divorce requires immediate updates to your estate plan to avoid unintended beneficiaries inheriting your assets. Ensure your plan reflects your current marital status to maintain control over your legacy.

A Significant Change in Assets

Whether you receive an inheritance, start a business, or face financial hardship, any significant change in your financial situation can impact your estate planning goals. Consider these shifts carefully and adjust your plan to align with your new reality.

Death of a Beneficiary or Executor

When a beneficiary or executor named in your estate plan passes away, it's crucial to update your designations. This ensures your wishes are carried out as intended, even if your original choices are no longer available.

Reassuringly, seeking professional estate planning guidance can help you navigate these changes smoothly. Consider reviewing your estate plan every few years or after any significant life event. Consult with an estate planning attorney to address concerns or tailor your plan to your current situation.