5 Life Changes That Should Trigger an Estate Plan Review
Creating an estate plan is an important step — but estate planning isn't something you necessarily do once and forget about.
As your life changes, your estate plan may need to change with it.
Your will, trusts, powers of attorney, health care directives, beneficiary designations, and account titling should work together to reflect your current wishes. If these documents haven't been reviewed in several years, they may no longer match your life today.
Here are five life changes that should prompt you to take another look at your estate plan.
1. Marriage, Divorce, or Remarriage
Changes in marital status can have a significant impact on your estate planning.
After getting married, you may want to add your spouse to certain accounts, update beneficiaries, change decision-makers, or reconsider how assets will ultimately be distributed.
Divorce can make a review especially important. Your former spouse may still be named on certain beneficiary designations or estate documents if they haven't been updated.
Remarriage can add another layer of complexity, particularly when there are children from previous relationships.
The goal is to make sure your documents reflect your current relationships and current wishes, not what was true when the documents were originally created.
2. The Birth or Adoption of a Child or Grandchild
Welcoming a new member of the family is another reason to review your estate plan.
For parents of minor children, this may include reviewing guardianship provisions and determining how assets would be managed for your children.
As your family grows, you may also want to reconsider how assets are distributed among children and grandchildren, whether trusts are appropriate, or whether you'd like to help fund education or other future goals.
Your plan should grow along with your family.
3. The Death or Health Change of Someone Named in Your Plan
Think about the people you've named throughout your estate documents.
Who is your executor? Your trustee? Your power of attorney? Your health care decision-maker? Who are your primary and contingent beneficiaries?
If one of those individuals has passed away, experienced a significant health change, or is simply no longer the person you would choose today, your plan may need to be updated.
This is one of the reasons it's important to look beyond just your will when reviewing your estate plan.
4. A Major Change in Your Financial Situation
Your financial life may look very different today than it did when you created your estate plan.
Perhaps you've:
- Bought or sold real estate
- Received an inheritance
- Started or sold a business
- Accumulated significantly more assets
- Opened new investment or retirement accounts
- Purchased additional life insurance
Significant changes in your assets may affect how you want your estate structured and how different pieces of your financial plan work together.
For business owners in particular, estate planning and succession planning can be closely connected.
5. Moving to a Different State
A move — particularly to another state — is a good reason to have your estate documents reviewed by an attorney familiar with the laws in your new state.
Estate and probate laws can vary, and you don't want to discover a potential issue with your documents when they're actually needed.
A move is also a good opportunity to review your financial accounts, beneficiaries, property ownership, and the professionals involved in your estate plan.
Don't Forget Your Beneficiary Designations
Your estate documents are only one piece of the puzzle.
Retirement accounts, life insurance policies, annuities, and certain other accounts can pass according to the beneficiary designation on the account, making it important to review these designations as part of your overall estate planning process.
Ask yourself:
If something happened to me today, would my assets go where I intend them to go?
If you're not confident in the answer, it may be time for a review.
When Was Your Last Estate Plan Review?
Estate planning isn't only about preparing for what happens after you're gone. It's also about making sure the right people can make financial and health care decisions for you if you're unable to make them yourself — and making sure your financial plan supports the legacy you want to leave.
At Bridger Financial Group, we help clients look at the bigger picture and understand how their estate planning goals fit into their overall financial plan.
Ready to take another look?
Bridger Financial Group does not provide legal or tax advice. Estate planning documents should be prepared and reviewed with a qualified estate planning attorney. We can work alongside your attorney and other professionals to help coordinate your financial plan with your estate planning goals.