Life Changes That Should Make You Review Your Estate Plan

 Posted on September 19,2018 in Estate Planning

If you have already developed an estate plan, congratulations! You are already a step ahead of more than half of American adults. However, it is also important to understand that estate planning is not a “set it and forget it” undertaking—to borrow a phrase from a well-known infomercial. You need to review your plan on regular basis to make sure that it is still ready to meet your evolving needs. In addition, there are certain situations or life changes that may require you to update or make changes to your estate plan.

Getting Married or Divorced

When you get married, your new spouse does not automatically become a beneficiary in your existing estate plan. He or she will only inherit a portion of your estate if you update your plan. On the other hand, a divorce will nullify any provisions in your will that pertain to your ex-spouse, but only once the divorce is finalized. You will need to choose a new beneficiary to receive the portion of the estate once meant for your spouse.

Keep in mind that you will need to update your named beneficiaries on retirement accounts and other investments. A divorce will not automatically revoke your ex’s status as beneficiary for those type of assets.

Blended Families

Estate plans that involve blended families are often the most complex. This is because, unlike a straightforward estate plan, with just a spouse and surviving children as beneficiaries, there may be allotments to an ex-spouse, children from a first marriage, adopted children, stepchildren brought into the marriage, a new spouse, or maybe even stepchildren of your ex-spouse—not to mention in-laws. Regardless of your family’s structure, a skilled estate planning attorney can ensure all applicable laws are considered.

Birth or Adoption of a Child

The joys of parenthood come with a lot of responsibility; updating your estate plan is just one of them. From determining who would care for the child in the event of your death to deciding who will handle the assets of your child’s benefits, an estate plan review after the birth or adoption is an absolute must.

Moving to Another State

This important change is one that even the most savvy estate planners often miss. It is, however, a critical one to consider. Each state has its own set of laws that could significantly impact the value and taxation of your estate. Ensure this has been considered by setting up an appointment with a local estate planning attorney soon after your move.

Never Underestimate the Benefits of an Attorney

No matter when or how life changes, regardless of the size of your estate, a skilled Lombard estate planning attorney can help you and your family find the best possible solution. To learn more, contact the experienced team at A. Traub & Associates by calling 630-426-0196 today.

Sources:

http://www.kare11.com/entertainment/television/programs/kare-11-sunrise/life-events-that-impact-your-estate-plan/45375457

https://www.huffingtonpost.com/steve-cook/9-life-changes-that-require-an-estate-plan-review_b_7985628.html