As an estate planning attorney, I have found some clients so glad to have their estate plan finished – enjoying the peace of mind that brings – can develop a mindset of “ that’s done; I don’t need to worry about that anymore.” I would love to say that’s true. It is a one-and-done activity, but for most, it is not. The reason is that, for most of us, life changes happen that directly impact our estate plans, so they need to be updated periodically. For that reason, I offer a complimentary estate plan review every three years for my estate plan clients. This helps ensure their plan is current and continues to meet their wishes and goals. The 5 most common life changes that happen to people and usually require an estate plan update are marriage, divorce, birth of a child, death, inheritance, and retirement. Below is a brief explanation of how these events can affect your plan.
Marriage: Whether a first or second marriage, you will want to ensure your loved one is protected if something happens to you. Laws vary by state, and you can’t always count on everything automatically going to your surviving spouse.
Divorce: Seems obvious, doesn’t it? Most people wouldn’t want their assets to go to a former spouse, but unless you make sure legally that they won’t, they might. So again, better to be safe than sorry. If you have recently divorced and haven’t updated your will, please don’t wait.
Birth of a child: Of course you want to protect your child, whether your first or tenth! Legally naming your children in your will is important. Equally important is naming a guardian if something happens to you and the child’s other parent. Don’t let the courts pick a guardian to bring up your children; they might not choose who you would have wanted.
Inheritance: Coming into a great deal of money is wonderful, but you need to make sure your estate plan reflects it. Or you may have inherited a summer home in Cape Cod. Whether it’s property or money, it is best to meet with your estate planning attorney to make sure your plan reflects the new windfall.
Retirement: If you are considering retiring soon, it is a good idea to review your estate plan with your estate planning attorney for a variety of reasons. Retirement can change how you think about new tax and charitable goals. You may be thinking of relocating to another state. It is a good time to review legal documents such as a healthcare power of attorney, living will, and financial power of attorney. You may also want to reconsider your life insurance coverage. Overall, it is a good time to meet with your attorney to go over everything.
Now, if you created your estate plan many years ago and haven’t experienced any of these life changes,, you might be okay. But most people discover they need updates even without big life changes. They might need to change beneficiaries, executors, or even their child’s guardian. I recommend my clients review their plans annually; it doesn’t take long and can save your loved ones a lot of trouble, stress, heartache, and maybe even money in the future.
If you need to update your estate plan (or start one), I’d be honored to assist. Please call me to make an appointment at 513-399-7526. Or visit my website, www.davidlefton.com, for more information.