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10 Life Events That Signal It’s Time to Review Your Estate Plan – Part 2

On Behalf of | Aug 1, 2023 | Firm News

You might think that estate planning is something you can complete one time and then check off your to-do list for good. But the reality is that in order for your estate plan to work for you, no matter how your life changes, your plan needs to change with it.

To ensure any big changes in your life are considered in your plan, we recommend reviewing your estate plan with your attorney at least every three years. But if any major life events happen before then, it’s crucial to have your plan reviewed as soon as possible so it can be updated if needed.

Last week, we started to explore 10 life changes that might affect your estate plan. This week, we’re coving five more life events, meaning it’s time to review your plan.

06 | You Became Seriously Ill or Injured

A sudden illness or injury can leave you incapacitated and unable to manage your affairs. Therefore, reviewing your estate plan to ensure it includes Powers of Attorney for healthcare and finances is essential. These documents let you name someone you trust to pay your bills and manage your assets, as well as make medical decisions for you if you can’t speak for yourself.

It’s also important to include healthcare directives that describe what kind of healthcare you want if you become incapacitated. This can include dietary restrictions or preferences, religious beliefs, or limits to certain treatments or life-sustaining measures. By legally documenting your healthcare choices, your Agent will feel more comfortable in the role and can make medical decisions that align with your wishes.

07 | You Moved Here from Another State

Each state has its own laws and regulations regarding estate planning. If you moved here from another state after completing your estate plan, it’s crucial to have your plan reviewed by a local attorney. If your existing plan doesn’t meet our state’s requirements for how an estate plan is signed or witnessed or contains terms or processes that differ from the processes of our state, this can cause delays when your plan needs to be used and may even require a court to review its validity.

Reviewing your plan with a local attorney and making any changes to comply with our laws will ensure that your estate plan can be relied upon immediately without delay or confusion.

08 | You Got Married

Marriage brings about not only joy and celebration but also important legal updates that are easy to put off. When you tie the knot, your estate plan must reflect your new marital status. Some states automatically make your spouse a co-owner of some of your property, but that doesn’t ensure an easy transfer of that property to your spouse when you die. Other states do not make any automatic updates in ownership. In Kentucky, for example, after the death of a spouse, the surviving spouse only owns half of the estate. The other half may be owned by the children, parents-in-law, or siblings-in-law!

To make sure your assets will go to your new spouse if you die or become incapacitated, it’s essential to update beneficiaries and make arrangements for shared assets. Additionally, you might consider creating provisions to protect your spouse financially and emotionally in the event of your passing.

09 | You Got a Divorce

The end of a marriage is a significant life event that requires immediate attention to your estate plan. After a divorce, you’ll likely need to revoke and redo your entire estate plan. This includes creating a new Will and Trust, updating beneficiary designations on life insurance and retirement accounts, and revising asset distribution to reflect your new circumstances and relationships.

If you have children from your previous marriage, you may need to revisit guardianship arrangements and provide for their financial needs accordingly.

10 | The Law Changed

Tax laws are subject to change, and revisions to estate tax exemptions can have a substantial impact on your estate plan. If there are significant changes in federal or state estate tax laws, reviewing your plan with an estate planning attorney is crucial to minimize tax burdens and protect your wealth for your loved ones.

Even if you weren’t affected by federal or state estate taxes in the past, changes in federal estate tax law are scheduled for 2026, so now is the time to review whether this change will affect your family’s estate tax filing status. Estate taxes can cost your family tens or even hundreds of thousands of dollars, but these tax liabilities are optional and can be avoided with proper estate planning.

By Your Side Through All of Life’s Changes

Your estate plan serves as the bedrock protecting your family and finances, not just for today but also for the future. However, estate planning isn’t a one-time task – it should adapt and evolve alongside the changes in your life.

As your Personal Family Lawyer® firm, we’re here to guide you through life’s changes to keep your estate plan up-to-date and effective, so you can have the peace of mind of knowing that your plan will work exactly how you want it to when your loved ones need it most.

If you’ve recently experienced a significant life event or it’s been a while since your last estate plan review, now is the time to review your plan. If you haven’t created an estate plan yet, it’s better to plan early than to have no plan at all.

To get started, schedule a free consultation to learn more about our Family Wealth Planning Session process, where we’ll discuss your family dynamics and goals, address any changes in your life, and create a comprehensive estate plan that brings you peace of mind.

This article is a service of Ruberg Law PLLC. We don’t just draft documents; we ensure you make informed, empowered decisions about life and death for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™. During the session, you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this valuable session at no charge.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you seek legal advice specific to your needs, such advice services must be obtained independently, separate from this educational material.