As I explained in Part 1, estate planning is not a one-and-done task to then check off your to-do list for good. Rather, in order for your estate plan to follow your wishes no matter how your life evolves, it needs to change and adapt with your circumstances.
To make sure any big changes in your life are considered in your plan, I recommend reviewing your estate plan with your attorney at least every three years. If any major life events occur before then, it’s crucial to have your plan reviewed as soon as possible so it can be updated if needed.
Last week, I talked about 10 life changes that might affect your estate plan [link to last week’s blog]. This week, I will discuss five more life events that signal it’s time to review your plan.
06 | You Became Seriously Ill or Injured
A sudden illness or injury can leave you incapacitated and unable to manage your affairs. Therefore, it’s essential to review your estate plan to ensure that it includes Powers of Attorney for healthcare and finances. These documents allow you to name someone you trust to pay your bills and manage your assets, as well as make medical decisions for you if you can’t speak for yourself.
It’s also important to include healthcare directives that describe what kind of healthcare you want to receive if you become incapacitated. This can include dietary restrictions or preferences, religious beliefs, or limits to certain treatments or life-sustaining measures. By legally documenting your healthcare choices, your Power of Attorney will feel more comfortable in the role and will be able to make medical decisions for you that align with your wishes.
07 | You Changed State Residency
Each state has its own laws and regulations regarding estate planning. If you moved from one state to another after completing your estate plan, it’s important to have your plan reviewed by a local attorney. If your existing plan does not meet your new state’s requirements as to how an estate plan is signed or witnessed, or contains terms or processes that differ from the processes of your former state, this can cause delays when your plan needs to be executed and may even require a court to review its validity.
Reviewing your plan with a local attorney and making any changes to comply with your present state’s laws will ensure that your estate plan can be carried out at any moment without delay or confusion.
08 | You Got Married
As well as joy and celebration, marriage brings about important legal updates that are easy to put off, and our estate plan needs to reflect your new marital status.
To make sure your assets will go to your new spouse if you die or become incapacitated, it’s essential to update beneficiaries and make arrangements for shared assets. Additionally, you might consider creating provisions to protect your spouse financially and emotionally in the event of your passing.
09 | You Got a Divorce
The end of a marriage is a significant life event that requires immediate attention to your estate plan. After a divorce, you will likely need to revoke and redo your entire estate plan. This includes creating a new Will and Trust, updating beneficiary designations on life insurance and retirement accounts, and revising asset distribution to reflect your new circumstances and relationships.
If you have children from your previous marriage, you may need to revisit guardianship arrangements and provide for their financial needs accordingly.
10 | Tax Law Changed
Tax laws are often subject to change, and revisions to estate tax exemptions can have a substantial impact on your estate plan. If there are significant changes in federal or state estate tax laws, it’s imperative to review your plan with an estate planning attorney to minimize tax burdens and protect your assets for your loved ones’ futures.
Even if you have not been affected by federal or state estate taxes in the past, changes in federal estate tax law are scheduled for 2026. This means that now is the time to review whether this change will affect your family’s estate tax filing status. Estate taxes can cost your family potentially hundreds of thousands of dollars, but these tax liabilities are optional and can be avoided with proper estate planning.
By Your Side Through All of Life’s Changes
Your estate plan serves as the foundation protecting your family and finances, not just for today but for the future. As your Personal Family Lawyer®, my mission is to be by your side through all of life’s changes, ensuring that your estate plan remains up-to-date and effective no matter what life brings your way. That is why I offer my clients a complimentary review of their estate plan every three years. I encourage you to reach out at any time before then with questions about life changes or events that might affect your plan.
If you’re ready to create an estate plan that protects your loved ones and your legacy, or if you would like your existing plan reviewed, please give me a call. I’d be honored to help ensure your family’s well-being for years to come.
Click on my scheduling link below to get started. I can’t wait to hear from you.