When Should You Review Your Estate Plan? Life Events That Should Trigger a Review
Creating a will or trust is one of the most important steps you can take to protect your loved ones and secure your legacy. But estate planning is not a “set it and forget it” process. Life changes–and so should your plan. An outdated will or trust can lead to unintended consequences, family disputes, and even court challenges. To keep your plan aligned with your wishes, it’s important to revisit it regularly, especially after major life events.
Marriage and divorce
Two of the most significant triggers for updating your estate plan are when you either marry or divorce. Marriage generally brings new considerations to the forefront, such as providing for your spouse, updating beneficiary designations, or creating joint trusts. Divorce, on the other hand, may require removing your former spouse from your will, trust, power of attorney, or healthcare directive. Failing to update your plan could mean that your assets go to someone you don’t intend.
Birth or adoption of a child
Welcoming a new child into your family is a joyous occasion, and also a time to update your estate plan. Parents should revise their wills to name guardians who would care for their children in the event of an untimely death. You may also wish to set up trusts to manage assets for your children until they reach an appropriate age, ensuring financial security, and responsible distribution.
Death or a change in circumstances
If a beneficiary in your estate plan passes away, or if your relationship with them changes, you should update your estate plan to reflect those circumstances. Similarly, if your named executor, trustee, or guardian is no longer willing or able to serve, you should appoint a replacement to avoid gaps in your plan.
Relocation to a new state
Estate laws vary from state to state. Moving across state lines can impact everything from how your will is interpreted to the tax treatment of your assets. Even if your existing documents remain technically valid, an attorney in your new state can help ensure your plan complies with local laws and takes advantage of state-specific strategies.
Major financial changes
Buying a home, selling a business, or receiving an inheritance can all alter the structure of your estate. Adding or disposing of significant assets without adjusting your will or trust can lead to confusion and disputes later. Likewise, changes in tax law may affect the best strategies for minimizing estate or gift taxes, making periodic reviews essential.
Retirement
As you approach retirement, your financial goals and health considerations shift. This is a good time to revisit beneficiary designations on retirement accounts, life insurance, and trusts, as well as to ensure your healthcare directives and powers of attorney are up to date.
Talk to a Virginia Beach Estate Planning Lawyer Today
Looking to update your estate plan? Contact the Virginia Beach estate planning lawyers at The Law Office of Angela N. Manz today to schedule an appointment and learn more about how we can help.
