You may not realize it, but estate planning is a lifelong process, and an outdated estate plan can cause issues for your future heirs. Here are some milestone events that can trigger the need to update your estate plan:
Marriage
Getting married (or remarried) may be the most common reason to update your estate plan. You may wish to include your new spouse in the plan and name them as a beneficiary on your life insurance. You may also want to name them as one of your heirs and as a power of attorney so that they can manage your medical and financial affairs should you become incapacitated.
If it is not your first marriage and you have adult children, you may also want to discuss their inheritances with your new spouse.
Divorce
Like marriage, getting a divorce may also be a good reason to update your estate plan. You may want to remove your ex-spouse’s name as a beneficiary on your life insurance and retirement funds. You may want to make other designations in their place. You may also wish to nominate another person as your representative and attorney-in-fact.
Birth
When you get a new child or grandchild, your estate plan may need adjustments to include them. You may want to nominate a guardian and ensure that they have assets to their name when you pass so that they can have a comfortable and secure future.
Death
You may need to revise your estate plan if one of your heirs dies. You may also need to make a new plan following the death of your designated power of attorney or executor.
Asset Acquisition
If you receive a large inheritance or otherwise acquire significant assets, they will obviously increase the size of your estate and could have an impact on the amount of estate taxes owed. There are strategies for minimizing estate taxes that your estate plan attorney can review with you.
Beyond these life-changing events, it is also a good idea to generally review and update your estate plan every two to three years. Staying on top of your estate plans is vital in ensuring your future heirs’ security, safety, and comfort even after you pass. An experienced estate plan attorney can help guide you through the entire process. Give us a call at 651-738-3433.