When to Update Your Estate Plan

What Should Trigger a Review of Your Estate Plan

Knowing when to update your estate plan is crucial to ensure it aligns with your changing life circumstances and evolving financial goals. In this guide, we'll explore the key milestones and life events that may necessitate updates to your estate plan.

Why Update Your Estate Plan?

Estate planning is not a one-and-done process; it's a dynamic strategy that should evolve with your life. Here are some important reasons to consider updating your estate plan:
1. Changing Laws:

• Estate laws, tax regulations, and inheritance laws can change over time. Regularly reviewing your plan ensures it complies with the most current legal requirements.

2. Major Life Events:

• Significant life events like marriage, divorce, or the birth of a child can impact your estate plan. Ensuring it reflects your new family structure and responsibilities is essential.

3. Asset Growth:

• As your assets grow, your estate plan may require adjustments to optimize tax strategies and asset distribution.

4. Family Dynamics:

• Changes in relationships, such as remarriage or the death of a spouse, may necessitate updates to your beneficiaries and designated representatives.

5. Aging and Long-Term Care Planning:

• As you age, planning for long-term care and Medicaid eligibility becomes crucial. Updating your plan can help protect your assets and plan for future healthcare needs.

6. Review of Non-Probate Assets:

• Don't forget to review beneficiary designations on life insurance and retirement plan accounts, as these assets pass outside of probate and should align with your overall estate plan.

Key Milestones for Estate Plan Updates

1. Relocation to Another State: If you move to a new state, review your estate plan to ensure it complies with the local probate and estate tax laws.
2. Divorce: After a divorce, update your estate plan to remove your ex-spouse from key roles and consider new arrangements for your assets.
3. Death of a Spouse: Major revisions are often needed to adapt to the loss of a spouse, including changes to beneficiaries and asset distribution.
4. Remarriage: Second marriages often require complex planning, especially when children from previous marriages are involved. Pooling estate tax exemptions may also be considered. Read more about estate planning considerations for blended families.
5. Empty Nesting: As children become independent adults, your estate planning goals may shift. You can now focus on legacy planning and asset distribution to your children directly.  You may also want to consider making a plan for asset protection in case you or your spouse needs assited living.
6. Birth or Adoption: Welcoming a child warrants updating your estate plan to appoint guardians and establish trusts for their financial security.  Read more about estate planning considerations for young families.
7. Inheritance: Receiving a substantial inheritance may necessitate estate tax planning that wasn't required before.​

Conclusion

Regularly updating your estate plan ensures that it continues to protect your loved ones and reflect your changing circumstances. Whether you're experiencing major life events or simply reaching new milestones, our experienced estate planning attorneys at slnlaw are here to guide you through the process and ensure your estate plan remains effective and up-to-date.

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Don't forget your non probate assets

At each of these stages, remember that you have certain assets that will distribute automatically outside of probate. These are included in your estate for tax purposes, but changes to your estate planning documents will not change those distributions unless you do. Any time you decide to review and update your estate plan, you should also check the beneficiary designations on your life insurance and retirement plan accounts to make sure they are still consistent with what you want.

How Our Estate Planning Lawyers Can Help

At slnlaw, our dedicated team specializes in helping individuals and families navigate estate planning updates. We provide personalized guidance to ensure your estate plan aligns with your evolving circumstances and legal requirements. You can use the button below to schedule a free information call, or simply give us a call at  781-784-2322.

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