Updating Your Estate Plan After Major Events
At Inhulsen Law, we understand that life is constantly changing. Whether it’s getting married, having kids, or moving to a new home, these major events can have a big impact on your estate plan. When life changes, your estate plan must reflect those changes, ensuring your wishes are honored and your loved ones are taken care of.
In this article, we’ll explore key moments in life that may prompt you to update your estate plan, giving you peace of mind that everything is in place.
Marriage
When you say “I do,” your life changes in more ways than one, including how your estate is handled. If you’re newly married, you’ll want to make sure your spouse is named in your will, trusts, and any beneficiary designations. It’s also a good time to consider adding or updating documents like powers of attorney and healthcare directives to ensure your spouse can decide if necessary.
If you’re blending families, things can get a little more complex. You’ll need to think about how to provide for children from previous marriages and how to balance your wishes for all family members.
Divorce
Divorce can be a tough transition, and it’s critical to make sure your estate plan reflects your new situation. You’ll likely want to remove your ex-spouse from your will, update your beneficiary designations on retirement accounts or life insurance policies, and revoke any powers of attorney that may still give your ex-spouse authority over your affairs.
This is also a good time to think about other family members and whether you’d like to adjust any plans related to them, like guardianship for your children or specific inheritances.
Children and Adoption
Welcoming a new child is one of the most exciting times in life, but it’s also a moment to think carefully about your estate. If you’re a parent, your estate plan should name a guardian for your minor children, ensuring they’ll be cared for by someone you trust if anything happens to you.
It’s also worth considering how your assets will be passed to your children. Setting up a trust can be a smart move to manage how and when your children receive their inheritance, especially if they are still young.
Buying or Selling a Home
Real estate can make a big difference in the value and distribution of your estate. If you’ve bought a new home or sold one, you’ll need to update your plan to reflect those changes. Make sure new properties are included, and any sold properties are removed to avoid confusion later on.
Financial Changes
A major financial event, like receiving an inheritance, selling a business, or experiencing financial loss, can mean it’s time to revisit your estate plan. Whether you’ve gained or lost assets, your plan should reflect the current value of your estate so that your wishes are accurately carried out.
If you’ve started or sold a business, this can have a big impact too. Make sure your business succession plan is up-to-date, and consider how any new or sold assets will affect the division of your estate.
Relocation
Moving to a new state—or even a new country—can affect your estate plan due to differences in local laws. Some states have different requirements for wills, trusts, and other legal documents, so it’s important to review your plan when you move to ensure everything is still valid and compliant.
Health Changes
As we age, or if we face serious illness or injury, it’s critical to have your estate plan updated to reflect these changes. You’ll want to make sure you have a durable power of attorney and healthcare directives in place, so your medical and financial wishes are respected, even if you’re no longer able to make decisions on your own.
This is especially important if you want to make sure someone specific is in charge of making decisions for you. Without these documents, courts could appoint someone who may not understand or follow your wishes.
Retirement
Retirement is a major life milestone, often accompanied by shifts in financial priorities. It’s the perfect time to review your estate plan to ensure it matches your current goals and provides for your family. As your income may change during retirement, consider how this impacts your estate and whether any adjustments are necessary to preserve your financial future.
Death of a Loved One
Losing a loved one is never easy, and it can also mean making changes to your estate plan. If someone named in your plan—whether a beneficiary or an executor—passes away, or if your relationship with someone changes, it’s essential to update your plan. This is also a good time to review your estate if you’ve formed new, significant relationships that you’d like to reflect in your plan.
Changes in Laws
Estate laws and tax rules are constantly changing, and what worked a few years ago may not work now. It’s a good idea to have your estate plan reviewed regularly to ensure it’s still in line with current laws and any new tax implications. A quick review can save your family from unnecessary stress later on.
Shifting Personal Wishes
Finally, it’s important to remember that your own wishes can change over time. Whether it’s how you want your assets distributed or who should make decisions on your behalf, updating your estate plan as your desires shift will help ensure that everything is done the way you want it.
Contact Us for a Comprehensive Estate Plan Review
At Inhulsen Law, we believe in staying connected with our clients through all of life’s changes. If you’re facing any of these major events or simply want peace of mind that your estate plan is current, we’re here to help. Reach out today for a personalized review of your estate plan, and let’s make sure your future is secure. Serving individuals and families throughout Michigan, our experienced team is ready to assist you. Call us today at 616-747-0000 to get started right away!
