When Should I Update My Estate Plan?

You may have a solid estate plan in place, which is excellent. But the most predictable thing about life is how much it can change. Some life events necessitate revisiting and revising your estate plans. A Will and Trust attorney in your area can give you sound advice on planning for such transitions.

Here are three of the most common life changes that require a review of your estate planning documents.

1. Moving to a Different State

If you are moving to a different city within the same state, you typically don’t need to worry much about changes to your Will or Trust. But if you’re changing states, you should look carefully at your Will, Living Trust, and other estate documents. States differ in their estate laws. Even minor adjustments to take those laws into account could save you and your beneficiaries a lot of money and headaches.

2. Having a Child

Any time a new child enters your family through birth, adoption, or foster care, you should adjust your estate plans to add them. It’s crucial to name a guardian for that child in case something happens to you.

If you have a new grandchild, you may want to allocate your assets so that some go directly to the newest member of your family. Doing so could avoid some unnecessary taxes.

3. Changing Your Marital Status

Some people think everything will go to the surviving spouse if they don’t have a Will or Trust. Often, this is not what happens. In many states, the amount going to a surviving spouse is limited. If you don’t have a plan, this spouse may have very little financial support to survive after your passing.

Also, it’s crucial to update your Will or Trust to reflect a divorce. Do not count on life insurance companies or retirement account providers to make these changes.

Other Reasons for Revisiting Your Estate Plan

You should update your estate plan if your medical condition changes, such as being diagnosed with a disease or long-term ailment. Also, if your estate grows or diminishes for any reason, it’s wise to revisit your estate plan. For example, the value of your house drastically changes, or you inherit an estate from a deceased relative.

If you have any questions about your estate plan or wonder if you should make changes, you can consult an estate attorney with Donnellon, Donnellon & Miller. A member of their team will be happy to answer your questions, inform you of your options, and even suggest ways you can save money or avoid some taxes. Working with a lawyer focusing on estate plans can give you confidence in making the best decisions for your family’s future.