This article “Life Changes that Require Estate Planning”, featured in The Leader March 2, 2022, and written by Jennifer Solack, is a great reminder of why estate planning is never a “one and done” kind of thing. Life happens … changes happen.
Ms. Solack writes … “Estate plans should typically be revisited whenever the law changes or life changes. You can always contact a lawyer to find out about the impact of any legal changes, but below are 7 life changes that should always prompt a reconsideration of your estate plan.
1. Marriage
With marriage, comes the formal joining of two lives, and your estate plan should be updated to incorporate this change. In addition to naming your spouse as the beneficiary on your insurance policies and retirement plans, you should also update your will and/or trust to reflect your new legal status, and include your spouse in the determination of who can make your financial and medical decisions should you be unable to do so yourself.
2. Divorce
The converse is also true. If you are beginning the divorce process, you need to unwind designations that include your spouse, unless you still want that person to inherit from you and/or make legal and financial decisions for you. After a divorce is final, you will likely have a new asset profile to consider for planning. Meeting with an attorney is critical to ensure that these assets are properly titled and will pass in the way you intend.
3. Births and Adoptions
With the addition of a new child, comes the responsibility to prepare for the child’s ongoing care and custody. In the estate plan context, that means naming guardians to care for your children in the long-term, as well as the short-term (if the long-term guardian does not live nearby). It’s also important to set up trust provisions for your child so they will not inherit before they are financially mature enough to do so. Such trust provisions will also allow you to name who can manage your child’s inheritance until the time is right for them.
4. Deaths
It is never easy to lose a loved one, and unfortunately, if they were named in your estate plan, you should also consider updating any designations that included them. Some changes to consider are naming new beneficiaries, designating a new agent for your financial or medical powers of attorney, and updating guardian nominations for your children.
5. Sickness
If you are battling an illness, you may want to revisit who you have chosen to make medical decisions for you and ensure that you have an updated health care directive in place.
6. Moving
If you move to a new state, you should have a lawyer in that state review your estate plan to confirm that it will still operate as intended under your new state’s laws. And if you acquire any real estate in the new state, be sure to take the steps necessary to properly coordinate it with your plan.
7. New Assets Acquired
More money, more problems? Only if you don’t plan well. Every time you inherit any new assets, acquire new property or other investments, change investment accounts, or start or sell a business, you should make sure the new assets or values will continue to work with your current plan.
I am in total agreement with Ms. Solack and the seven life changes that require updates to your estate plan. Others might include approaching retirement or an heir who has become mentally or emotionally compromised. Once again showing how each client’s estate plan is as unique as they are. I hope you’re ready to start or update your estate plan. Please visit my services page https://davidlefton.com/services/ and take the next step while you are there and schedule a consultation. I’d be honored to help you.
For more information about estate planning, probate, or trust administration in Cincinnati and throughout the rest of Southwest Ohio, and to review free resources regarding estate planning, probate, or trust administration, visit my website https://davidlefton.com/ If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526). David H. Lefton is an Estate Planning and Probate Attorney. He is a partner in the law firm of Barron, Peck, Bennie & Schlemmer.
Source: The Leader 3/2/22 written by Jennifer Solak