Estate planning is an ongoing process, as major life events can necessitate significant changes to your estate plan. From marriage to the birth of a child, these events require updates to ensure your wishes are accurately reflected. Please continue reading to learn about some of the life events that may warrant updating your estate plan.
Major Life Events That May Necessitate Updates to Your Estate Plan
Marriage or Divorce
When you get married, your estate plan needs a review. You might want to add your spouse as a beneficiary. It’s important to update your will and trusts, as this ensures your spouse inherits according to your wishes. Divorce, on the other hand, often requires removing your ex-spouse as a beneficiary. This prevents unintended inheritances. Additionally, you may need to update your power of attorney and healthcare proxy. These changes reflect your new marital status and intentions.
Birth or Adoption of a Child
The arrival of a new child is a joyous occasion, but it does require updates to your estate plan. You may want to designate a guardian for your minor child. This is crucial if something happens to you and your spouse. Additionally, you might want to set up a trust. This ensures your child’s inheritance is managed responsibly. It’s also important to update your beneficiaries to include your new child, and you should consider reviewing your life insurance policy as well. These steps provide for your child’s future needs.
Changes in Financial Status
A significant change in your financial situation can impact your estate plan. This could be due to a promotion, a new business, or an inheritance. An increase in assets often necessitates more complex planning. You might need to set up additional trusts, which help manage and protect your wealth. It’s also important to review your tax strategies, as effective planning can minimize estate taxes.
Health Changes
A serious illness or disability can prompt a reevaluation of your estate plan, more specifically, of your healthcare directives. Additionally, you might want to review your power of attorney. This designates someone to make financial decisions if you’re unable to do so. Consider setting up a special needs trust if you have a disability, which can protect your assets while ensuring you qualify for government benefits.
Death of a Beneficiary or Executor
The death of a beneficiary or executor requires immediate attention. You’ll need to update your will and trusts, which can ensure your assets are distributed as you wish. You may also need to appoint a new executor (the person who is responsible for managing your estate after your death).
If you’d like to create or update your estate plan, please don’t hesitate to contact a team of skilled Tampa estate planning lawyers from Tampa Law Group today.
