An estate plan is not a set-it-and-forget-it kind of task. Although it may be time-consuming, life’s unpredictable nature often necessitates a reevaluation of these plans. Here are five major life events that signal it is time for an estate plan review.
Having a child turn 18
When a child turns 18, they are legally an adult. Their parents or guardians will no longer have decision-making rights over their education, medical records or finances. Previous estate plan protections and certain components may no longer apply, requiring updates to beneficiary designations, trusts and powers of attorney.
Welcoming a child or grandchild
The arrival of a new family member prompts changes in priorities and financial considerations. Parents, grandparents and acting guardians may want to include the new child in long-term provisions and establish specific arrangements that help safeguard their well-being as they grow up.
Changing marital status
Marriage or divorce carries legal and financial implications. Marriage prompts an individual to include their spouse and children as beneficiaries. Conversely, divorce typically necessitates removing the former spouse from existing plans.
Acquiring a major asset
The purchase or sale of a home, gaining an inheritance of a significant sum, or achieving a successful business venture can impact one’s net worth. These assets can change the value of the estate and may require adjustments regarding distributions.
Facing changes in health
Deterioration or improvement in health can substantially affect a person’s decisions and future. It becomes even more essential to include provisions for incapacity and end-of-life health care if the existing plan does not. Doing so ensures that individuals and their loved ones are prepared for any eventualities, providing peace of mind and clarity during challenging times.
Estate planning is an ongoing process
Major life events are a good time to make estate plan modifications. Fortunately, these legal tools are highly customizable and can be adapted according to one’s needs. An experienced estate planning attorney can provide guidance and support to execute revisions effectively and address any potential oversights.