7 Signs It Is Time to Update Your Estate Plan

If you have already established an estate plan, great job! You are among only 40% of Americans who have taken this step to protect their families and assets should the worst happen. But an estate plan is a living thing, just like we are, and it’s important to update it any time you experience a major life change. That way, you can ensure your estate plan reflects your wishes in real time and does its job by protecting your family’s future. If you have experienced any of the following life events, it’s time to revisit your estate plan: You recently got married or divorced. A spouse is often a person chosen to hold an important role in our estate plan, such as a beneficiary or trusted advisor. But relationships change and you will want to make sure your estate plan reflects your wishes as to who will hold these important roles. It’s also important to update your estate plan if your children or grandchildren have married or divorced as this may affect your wishes regarding beneficiaries, etc. You welcomed a new child or grandchild. Congratulations! Welcoming a new little one into the family is something to celebrate, and one of the ways you can do so is by updating your estate plan to include them. Denoting a guardian and wishes for how your children are raised should something happen to you is crucially important; this is not a decision you want to leave up to the courts. A new child in the family could also mean opening (or updating) a gifting trust, 529 education plan, or making other arrangements for their benefit. Your financial status has changed. Whether for good or bad, a significant change in your finances means it’s time to update your estate plan. Did you recently come into an inheritance? Start, grow, or sell a business? Win the lottery? Great! Be sure to plan for those new assets. On the other side of things, if you experienced a significant medical cost or filed for bankruptcy, your updated financial status should be reflected in your estate plan. You experienced the death of a family member or close friend. It’s a sad fact of life, but when someone close to you passes away, it affects your future too. If a recently deceased family member or close friend played a role in your estate plan, perhaps as a beneficiary, guardian, executor, trustee, or power of attorney, it’s time to consider who should take their place. The death of a family member may also affect your financial situation in the form of an inheritance, another instance where you will want to update your plan. You moved out of state. Each state’s laws surrounding estate planning are slightly different, so if you move out of state or purchase a second home in a new state, it’s time to review your estate plan. You will want to make sure you are taking advantage of your new home state’s laws and also avoiding any penalties. A close friend or family member develops an addiction or overspending habit. Estate plans are like people: they change and evolve over time. Sometimes, someone close to us experiences changes in their life and habits that affect the place they hold in our estate plan. If a trusted advisor or beneficiary has developed an addiction (such as gambling) or an overspending habit that could be exacerbated by inheriting money from you, it’s time to consider whether they should hold the same status in your will. Remember: no change to your estate plan is permanent until you pass away, so someone who is struggling now can certainly be put back in once they stabilize. The simple goal for any estate plan is to do what is best for your loved ones’ futures, and sometimes what is best is removing someone - either permanently or temporarily - from your will. Your child comes of age and is ready for more responsibility. It may seem like just yesterday they were running around in diapers, but if you child is an adult, it’s time to consider whether or not they should play a larger role in your estate plan. Some people choose to have a child take on a role as a trusted advisor, executor, or power of attorney, but it all depends on how responsible they are. It will also be important to consider the circumstances under which they will need to fulfill these roles. When you pass away, they will be dealing with their own grief, so talk to them about if they believe they will be able to handle the responsibility associated with playing a role in your estate plan. I’m Paul Margerie, an experienced estate planning attorney serving Wauwatosa, Elm Grove, Brookfield, Milwaukee, Waukesha, and surrounding communities with exceptional service, ensuring hundreds of local families are protected for the future. Don’t wait to start the estate planning process - give me a call today. If you have already established an estate plan, great job! You are among only 40% of Americans who have taken this step to protect their families and assets should the worst happen.

But an estate plan is a living thing, just like we are, and it’s important to update it any time you experience a major life change. That way, you can ensure your estate plan reflects your wishes in real time and does its job by protecting your family’s future.

If you have experienced any of the following life events, it’s time to revisit your estate plan:

  • You recently got married or divorced. A spouse is often a person chosen to hold an important role in our estate plan, such as a beneficiary or trusted advisor. But relationships change and you will want to make sure your estate plan reflects your wishes as to who will hold these important roles. It’s also important to update your estate plan if your children or grandchildren have married or divorced as this may affect your wishes regarding beneficiaries, etc.
  • You welcomed a new child or grandchild. Congratulations! Welcoming a new little one into the family is something to celebrate, and one of the ways you can do so is by updating your estate plan to include them. Denoting a guardian and wishes for how your children are raised should something happen to you is crucially important; this is not a decision you want to leave up to the courts. A new child in the family could also mean opening (or updating) a gifting trust, 529 education plan, or making other arrangements for their benefit.
  • Your financial status has changed. Whether for good or bad, a significant change in your finances means it’s time to update your estate plan. Did you recently come into an inheritance? Start, grow, or sell a business? Win the lottery? Great! Be sure to plan for those new assets. On the other side of things, if you experienced a significant medical cost or filed for bankruptcy, your updated financial status should be reflected in your estate plan.
  • You experienced the death of a family member or close friend. It’s a sad fact of life, but when someone close to you passes away, it affects your future too. If a recently deceased family member or close friend played a role in your estate plan, perhaps as a beneficiary, guardian, executor, trustee, or power of attorney, it’s time to consider who should take their place. The death of a family member may also affect your financial situation in the form of an inheritance, another instance where you will want to update your plan.
  • You moved out of state. Each state’s laws surrounding estate planning are slightly different, so if you move out of state or purchase a second home in a new state, it’s time to review your estate plan. You will want to make sure you are taking advantage of your new home state’s laws and also avoiding any penalties.
  • A close friend or family member develops an addiction or overspending habit. Estate plans are like people: they change and evolve over time. Sometimes, someone close to us experiences changes in their life and habits that affect the place they hold in our estate plan. If a trusted advisor or beneficiary has developed an addiction (such as gambling) or an overspending habit that could be exacerbated by inheriting money from you, it’s time to consider whether they should hold the same status in your will. Remember: no change to your estate plan is permanent until you pass away, so someone who is struggling now can certainly be put back in once they stabilize. The simple goal for any estate plan is to do what is best for your loved ones’ futures, and sometimes what is best is removing someone – either permanently or temporarily – from your will.
  • Your child comes of age and is ready for more responsibility. It may seem like just yesterday they were running around in diapers, but if you child is an adult, it’s time to consider whether or not they should play a larger role in your estate plan. Some people choose to have a child take on a role as a trusted advisor, executor, or power of attorney, but it all depends on how responsible they are. It will also be important to consider the circumstances under which they will need to fulfill these roles. When you pass away, they will be dealing with their own grief, so talk to them about if they believe they will be able to handle the responsibility associated with playing a role in your estate plan.

I’m Paul Margerie, an experienced estate planning attorney serving Wauwatosa, Elm Grove, Brookfield, Milwaukee, Waukesha, and surrounding communities with exceptional service, ensuring hundreds of local families are protected for the future. Don’t wait to start the estate planning process – give me a call today.