5 Key Life Moments Where Proactive Estate Planning is Essential
Are You Prepared for These 5 Major Life Moments?There are some moments in life it’s impossible to prepare for on an emotional level: getting married, having a child, getting a divorce, or losing your parents or a spouse. But when it comes to your finances and estate planning, it is possible to be proactive, because each of these major milestones also has implications for your estate plan.
Below we explore five key milestones where estate planning is essential. |
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1. When You Get Married
Before marriage, you probably only had yourself to think about. Now, you have a partner who may rely on you in some way for support. That person also becomes entitled to all of your assets if something happens to you, which may or may not be what you want.
After you’re married, if you don’t want certain belongings to pass to a spouse if you die, you will need a will to clearly state your wishes. Do you want your parents to receive some of your assets? Once you are married, the law will assume that your entire estate will go to your new spouse. You may want everything to go to your spouse, or you may want to take care of a sibling or some other relative- if this is the case, you need to have at least a will to set out your wishes in a legally enforceable way.
There are additional ways an estate planner can help when you’re a newlywed. You can set up power of attorney for each spouse as well as fill out healthcare proxy forms. Make sure you can each make financial and medical decisions for the other in the event of an accident or injury – you’ll be thankful you did if you ever find yourself in a critical situation.
Getting married is a joyous occasion that you may not want marred by long discussions about death and disability, but this is a major life change, and now is the time to talk it out with your new spouse and an estate planning attorney.
After you’re married, if you don’t want certain belongings to pass to a spouse if you die, you will need a will to clearly state your wishes. Do you want your parents to receive some of your assets? Once you are married, the law will assume that your entire estate will go to your new spouse. You may want everything to go to your spouse, or you may want to take care of a sibling or some other relative- if this is the case, you need to have at least a will to set out your wishes in a legally enforceable way.
There are additional ways an estate planner can help when you’re a newlywed. You can set up power of attorney for each spouse as well as fill out healthcare proxy forms. Make sure you can each make financial and medical decisions for the other in the event of an accident or injury – you’ll be thankful you did if you ever find yourself in a critical situation.
Getting married is a joyous occasion that you may not want marred by long discussions about death and disability, but this is a major life change, and now is the time to talk it out with your new spouse and an estate planning attorney.
2. When You Have a Child
Is there anything more life-changing than welcoming a child into the world? Now you truly do have another human being depending on you for support, and estate planning helps you make sure you do just that.
If you do not have a will, and your children are also the children of your spouse, the law will give everything to your spouse. This tracks what most parents of young children would instinctively prefer- that the other parent has all the resources needed to take care of the children- but it does not necessarily protect your children if your spouse were to later die or remarry and start a new family. Many new parents choose to create estate plans from the beginning that allow the surviving spouse to use income and assets during their lifetime, but reserves the assets themselves for the children on the second spouse's passing.
Other questions you will need to answer as you become a parent include who will care for your children if you die? How will your assets be distributed among your children? Comprehensive estate planning includes identifying guardians for minor children, detailing your wishes, setting up a trust and planning ahead so your family receives as much support as possible in the event of your death.
If you do not have a will, and your children are also the children of your spouse, the law will give everything to your spouse. This tracks what most parents of young children would instinctively prefer- that the other parent has all the resources needed to take care of the children- but it does not necessarily protect your children if your spouse were to later die or remarry and start a new family. Many new parents choose to create estate plans from the beginning that allow the surviving spouse to use income and assets during their lifetime, but reserves the assets themselves for the children on the second spouse's passing.
Other questions you will need to answer as you become a parent include who will care for your children if you die? How will your assets be distributed among your children? Comprehensive estate planning includes identifying guardians for minor children, detailing your wishes, setting up a trust and planning ahead so your family receives as much support as possible in the event of your death.
3. If You Get Divorced
No one goes into marriage with the intention of divorce, but sadly, it’s a reality for many families. Divorce brings a whole range of estate planning questions. Have you changed the name of your account beneficiaries? Would you like to change your healthcare proxy and power of attorney? Should you rename your will executor?
After a divorce is final, the law will essentially write your ex-spouse out of your estate planning documents. Though this will leave the rest o f your plan intact and valid, it may leave some holes that you need to fill in by amending your documents.
Additional concerns arise during the pendency of a divorce, before it is finalized. You are still legally married, and if something happens to you in this period your spouse has a right to inherit even if you are separated. Once a divorce petition is filed, there are limits on what you can change in your estate plan, but it is something you might want to discuss with an estate planning attorney ahead of time if you are considering filing for divorce.
After divorce, you may wish to marry a second time. Again, an estate planning lawyer can help with key issues at this stage. What should a second spouse receive if you die? How will children of a second marriage be provided for? Answer these questions now and save your family hours in probate court and thousands of dollars in lawyer fees.
After a divorce is final, the law will essentially write your ex-spouse out of your estate planning documents. Though this will leave the rest o f your plan intact and valid, it may leave some holes that you need to fill in by amending your documents.
Additional concerns arise during the pendency of a divorce, before it is finalized. You are still legally married, and if something happens to you in this period your spouse has a right to inherit even if you are separated. Once a divorce petition is filed, there are limits on what you can change in your estate plan, but it is something you might want to discuss with an estate planning attorney ahead of time if you are considering filing for divorce.
After divorce, you may wish to marry a second time. Again, an estate planning lawyer can help with key issues at this stage. What should a second spouse receive if you die? How will children of a second marriage be provided for? Answer these questions now and save your family hours in probate court and thousands of dollars in lawyer fees.
4. When a Parent Dies
The death of a parent can bring the need for a clear estate plan into sharp focus, as you deal with settling their estate and see what they did and did not adequately prepare for. It can also very suddenly change your own financial picture, if you have inherited assets that bring your family close to or over the Massachusetts estate tax threshold.
When a parent is ill, it is a good time to review their plan to make sure it reflects their wishes, and to understand who holds key roles like health care proxy and durable power of attorney, as they begin to need more help.
After a parent passes, it is a good time for you to meet with an estate planning attorney and review lessons learned and if or how any inheritance changes the goals and strategies of your own estate plan.
When a parent is ill, it is a good time to review their plan to make sure it reflects their wishes, and to understand who holds key roles like health care proxy and durable power of attorney, as they begin to need more help.
After a parent passes, it is a good time for you to meet with an estate planning attorney and review lessons learned and if or how any inheritance changes the goals and strategies of your own estate plan.
5. When a Spouse Dies
If you or your spouse were to pass on, are you prepared for all of the imminent financial decisions that will result? Do both of you have at least some immediately liquid assets (like joint savings or life insurance policies) that will help the surviving spouse deal with expenses right away? Working with an estate planner ensures either you or your spouse has a strategy to deal with estate tax and bypass probate.
If your spouse dies, when you are ready to address it, it is also important to review your own plan. Where your original plan may have had all assets going to your spouse for their lifetime and then to your children, it is likely those documents now need to be revised to provide them directly to your children. This is especially important if any of your children are minors, as they will not be able to receive assets directly, and will need a trustee to manage those assets for them.
If your spouse dies, when you are ready to address it, it is also important to review your own plan. Where your original plan may have had all assets going to your spouse for their lifetime and then to your children, it is likely those documents now need to be revised to provide them directly to your children. This is especially important if any of your children are minors, as they will not be able to receive assets directly, and will need a trustee to manage those assets for them.
How We Can Help
At slnlaw, we understand that each life milestone brings unique challenges and opportunities for estate planning. Our experienced estate planning lawyers are dedicated to guiding you through each step, ensuring your wishes are honored and your loved ones are protected. Whether you're getting married, welcoming a child, navigating a divorce, dealing with the loss of a parent, or facing the death of a spouse, we provide personalized solutions tailored to your specific needs. You can use the button below to schedule a free information call, or give us a call at (781) 784-2322.
Meet Our Estate Planning Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna wrote a book on estate planning: The Road to Peace of Mind: What You Need to Know About Estate Planning. Jenna has helped many individuals and families with planning to protect their legacies and loved ones, and planning for the future and succession of their businesses.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and earned her LLM in estate planning from Western New England Scool of Law in 2016. She has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped many clients with planning for their legacies and their future, and navigating the probate process in Massachusetts after the death of a loved one.
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