Life Events That Warrant An Immediate Review Of Your Estate Plan

You've gone through the process of creating an Estate Plan that outlines your wishes for how your assets will be distributed after you pass on from this earthly life.

But what happens if your life circumstances change? 

What if you get married, have a child, or experience another major life event? 

Do you need to update your estate plan? 

The answer is usually yes. 

Why?

Because no one knows when life will take an unexpected turn, it's important to be prepared for the unexpected. 

What Are Some Life Events That Should Prompt A Review Of Your Estate Plan

Many people only think about their estate plan when they first create it. 

However, your Estate Plan is not a static document - it should change as your life changes. 

Here are some life events that should prompt a review of your estate plan:

• Marriage or divorce. If you get married or divorced, you will need to update your beneficiaries and executor. This is especially important if you want your spouse to inherit your assets in the event of your death. Without an up-to-date estate plan, there's a risk that your spouse could be left out completely. 

• Birth or adoption of a child. If you have a child, you will need to name them as a beneficiary in your will. This ensures that they're taken care of financially if something happens to you. It also gives you the opportunity to name a legal guardian for your child in the event that both parents die. You may also want to consider setting up a trust for their benefit.

• Change in job status. If you change jobs, you may need to update your power of attorney and healthcare directive to reflect your new employer's policies. You should also update your beneficiary designations on any accounts with job-related benefits, such as your life insurance policy or pension plan.

• You Experience a Major Change in Your Assets. A significant increase or decrease in the value of your assets warrants a review of your Estate Plan. This is because changes in asset value can affect the amount of taxes owed on those assets after your death.

• Death of a spouse or family member. If your spouse or another family member dies, you will need to update your beneficiaries and executor accordingly. You may also need to make changes to your power of attorney and healthcare directive.

• You Relocate to Another state. If you move to another state, you'll need to make sure that your estate plan complies with the laws of your new state of residence. Every state has its own unique laws surrounding wills and trusts, so it's important to ensure that your documents are valid in the eyes of the law. 

Your Estate Plan is a crucial document that outlines what will happen to your assets after you die. But it's not a set-it-and-forget-it kind of document—if your life circumstances change, you'll need to update it accordingly. 

By staying on top of these changes, we can ensure that our loved ones are taken care of according to our wishes—no matter what life throws our way.

Need help with your Estate Planning? Have questions about what you should do? Contact our team today…we’re here to help! Contact our office at (805) 201-2552.

DISCLAIMER: The content contained herein is for general informational purposes only.  These materials do not constitute legal or other professional advice.  We do not accept any responsibility for any loss that may arise from reliance on this information.  No reader should act or refrain from acting based on information contained in this article without seeking advice of counsel.