Top Tips for Updating Your Estate Plan After Major Life Changes

Why Estate Planning Needs Regular Updates

Estate planning is not a one-time task. As life evolves, so should your estate plan. Major life changes—such as marriage, divorce, the birth of a child, or the death of a loved one—can significantly impact your financial and personal circumstances. Keeping your estate plan up to date ensures that your assets are distributed according to your current wishes and that your loved ones are protected.

1. Review Your Will and Trusts

After a major life event, the first step is to review your will and any trusts you have established. Ensure that the beneficiaries listed are still accurate and reflect your current intentions. For example, if you’ve recently had a child, you may want to include them as a beneficiary. Conversely, if you’ve gone through a divorce, you may want to remove your ex-spouse from your estate documents.

2. Update Beneficiary Designations

Beneficiary designations on retirement accounts, life insurance policies, and payable-on-death accounts override what’s written in your will. It’s crucial to update these designations to reflect your current wishes. Failing to do so can result in unintended consequences, such as an ex-spouse receiving benefits.

3. Reassess Guardianship Provisions

If you have minor children, your estate plan should include guardianship provisions. Major life changes, such as the death of a spouse or a change in your relationship with a designated guardian, may necessitate updates to these provisions. Choose someone who shares your values and is capable of caring for your children.

4. Evaluate Your Power of Attorney and Healthcare Proxy

Your power of attorney and healthcare proxy are critical components of your estate plan. These documents designate individuals to make financial and medical decisions on your behalf if you become incapacitated. After a major life change, reassess whether the individuals named are still appropriate choices.

5. Consider Tax Implications

Life changes can have significant tax implications. For instance, inheriting a large sum of money or acquiring new property may affect your estate’s tax liability. Consult with an estate planning attorney to understand how these changes impact your estate and to explore strategies for minimizing taxes.

6. Communicate with Your Family

Transparent communication with your family about your estate plan can prevent misunderstandings and conflicts. After updating your plan, consider discussing the changes with your loved ones to ensure everyone is aware of your intentions.

7. Work with an Experienced Estate Planning Attorney

Estate planning is complex and requires careful consideration of legal and financial factors. An experienced attorney can help you navigate these complexities and ensure your plan is comprehensive and legally sound.

Stay Proactive with Your Estate Plan

Major life changes are inevitable, but being proactive about updating your estate plan can provide peace of mind and protect your loved ones. Regular reviews and updates ensure that your plan remains aligned with your current circumstances and wishes.

Call the Ament Law Group for Assistance

If you’ve experienced a major life change and need to update your estate plan, contact the attorneys at the Ament Law Group. Our experienced team is here to guide you through the process and ensure your estate plan reflects your current needs and goals. Call us today to schedule a consultation.