Life is full of milestones—marriage, divorce, the birth of a child, or the passing of a loved one. Each of these events can have a significant impact on your estate planning, making it essential to review and update your documents to reflect your current circumstances and wishes.
Why Life Changes Affect Your Estate Plan
Your estate planning documents—such as your will, living will, and power of attorney—are meant to ensure that your assets, healthcare decisions, and financial matters are handled according to your wishes. Major life events can alter your responsibilities and priorities, which is why updating your estate plan is crucial.
Marriage
Getting married is an exciting new chapter, but it also comes with important legal considerations. After marriage, you may want to:
- Update beneficiaries to include your spouse on your will, retirement accounts, or insurance policies.
- Designate your spouse as your power of attorney or healthcare agent, allowing them to make financial or medical decisions on your behalf if necessary.
It’s important to remember that marriage alone does not automatically grant your spouse authority over all financial or medical matters. Without proper estate planning documents, they may not have the legal power to act for you in critical situations.
Divorce
Divorce is another major life event that can dramatically change your estate planning needs. After a divorce, you should:
- Remove your ex-spouse from your will, trusts, and other beneficiary designations (unless you explicitly intend otherwise).
- Reevaluate your powers of attorney and healthcare agents to ensure the right individuals have authority to act on your behalf.
Failing to update your estate plan after a divorce could unintentionally leave your former spouse with legal rights to your assets or decision-making powers.
Birth of a Child
Welcoming a child is one of the most important reasons to establish or update an estate plan. New parents should consider:
- Adding your child as a beneficiary in your will, trust, or accounts.
- Appointing a legal guardian to care for your child if something happens to you and the child’s other parent.
- Ensuring that any inheritance left to a minor is well-protected and compliant with laws surrounding minor beneficiaries.
Proper planning ensures that your child’s financial future and well-being are secured, even in unforeseen circumstances.
After the Passing of a Loved One
The loss of a family member can also impact your estate plan, especially if you inherit assets or take on new responsibilities. It’s important to review your documents to reflect these changes and ensure your plan continues to align with your goals and responsibilities.
Key Takeaways
Estate planning is not a one-time task—it should evolve alongside your life. Review your estate plan after any major life event and consult with an experienced attorney to make sure your documents reflect your current circumstances, wishes, and goals. Doing so not only protects you but also ensures your loved ones are taken care of according to your intentions.
If you have any questions about the topic discussed in this article, or any estate planning matter, please give us a call at Bononi & Company 724-832-2499.