Major life events that warrant an estate plan review

On Behalf of | Aug 7, 2021 | Estate Planning |

Your estate plan is a reflection of your life at the time you made it. As your circumstances change, your plans may need updating to ensure they best capture your preferences and provide for your loved ones.

You should consider an estate plan review after these major life events.

A shift in financial circumstances

Many things can trigger a change in finances, such as filing for divorce, getting a promotion, entering retirement or inheriting assets. After such changes, you may want to consider dividing your assets differently. You will also need to account for the impact of taxes as the size of your estate increases or decreases.

The birth of a child

When a new child enters your life, you will likely want to appoint a trusted guardian and adjust your will or trust to provide for the child should something happen to you.

The death of a loved one

Often, a family member or friend will play an important role in your estate plans, serving as an executor, power of attorney, guardian or beneficiary. If that person passes away, you will need to revisit your plans and appoint new people to these roles.

A move out of state

Estate laws and taxes vary between states. If you make a move to a new state, you should update your documents to ensure they do not conflict with the regulations of your new home.

Major life events are not the only reasons to conduct an estate plan review. Legislation and taxes are constantly shifting, and you should update your will and other documents every few years to account for these changes.