(The Leader News) - Estate plans should typically be revisited whenever the law changes or life changes. You can always contact a lawyer to find out about the impact of any legal changes, but below are 7 life changes that should always prompt a reconsideration of your estate plan.
1. Marriage
With marriage, comes the formal joining of two lives and your estate plan should be updated to incorporate this change. In addition to naming your spouse as the beneficiary on your insurance policies and retirement plans, you should also update your will and/or trust to reflect your new legal status, and include your spouse in the determination of who can make your financial and medical decisions should you be unable to do so yourself.
2. Divorce
The converse is also true. If you are beginning the divorce process, you need to unwind designations that include your spouse, unless you still want that person to inherit from you and/or make legal and financial decisions for you.
After a divorce is final, you will likely have a new asset profile to consider for planning. Meeting with an attorney is critical to ensure that these assets are properly titled and will pass in the way you intend.
3. Births and Adoptions
With the addition of a new child, comes the responsibility to prepare for the child’s ongoing care and custody. In the estate plan context, that means naming guardians to care for your children in the long-term, as well as the short-term (if the long-term guardian does not live nearby). It’s also important to set up trust provisions for your child so they will not inherit before they are financially mature enough to do so. Such trust provisions will also allow you to name who can manage your child’s inheritance until the time is right for them.
4. Deaths
It is never easy to lose a loved one, and unfortunately, if they were named in your estate plan, you should also consider updating any designations that included them. Some changes to consider are naming new beneficiaries, designating a new agent for your financial or medical powers of attorney, and updating guardian nominations for your children.
5. Sickness
If you are battling an illness, you may want to revisit who you have chosen to make medical decisions for you and ensure that you have an updated health care directive in place.
6. Moving
If you move to a new state, you should have a lawyer in that state review your estate plan to confirm that it will still operate as intended under your new state’s laws. And if you acquire any real estate in the new state, be sure to take the steps necessary to properly coordinate it with your plan.
7. New Assets Acquired
More money, more problems? Only if you don’t plan well. Every time you inherit any new assets, acquire new property or other investments, change investment accounts, or start or sell a business, you should make sure the new assets or values will continue to work with your current plan.
If you are anticipating or have recently experienced any of these life events, please contact Solak Legal at 713-588-5744 or jennifer@solaklegal.com so that we can discuss your particular needs.
For The Leader
Mar 10, 2022
The information in this column, which was sponsored by Solak Legal as part of The Leader Expert Series, is intended to provide a general understanding of the law and not legal advice. Readers with legal questions should consult attorneys for advice on their particular circumstances. Jennifer Solak provides legal advice for families and businesses.
