When Do You Need to Build or Change an Estate Plan? 

Considering your own mortality is not enjoyable. While it may seem grim and burdensome to decide who should receive your belongings after you pass away, estate planning is essential to carrying out your final wishes and protecting your loved ones when you are gone. Estate planning allows you to provide a set of instructions that direct which assets will go to which individuals and when. Estate planning tools such as wills and trusts provide you the power of making the right choices for your situation.

Your estate plans can also dictate how medical and financial decisions should be handled if you are incapacitated and unable to handle these decisions yourself. In any situation, it is difficult for a family to prepare for a loved one’s incapacitation or death; however, estate planning can take a great weight off of your loved ones’ shoulders. Estate planning is not just suited for retirees or the wealthy. Planning your estate should be considered as early on as possible and is crucial even for families with modest assets. However, estate planning is even more important for those with high-value or complex assets. 

Estate planning is an ongoing process that should be revisited and reevaluated often, especially during significant life events. If you neglect this responsibility, your estate plans may not accurately reflect your wishes. 

Situations in Which You May Need to Modify Your Estate Plans

When the time comes, out-of-date designations and other errors can lead to incorrect distribution of assets, family confusion or contention, and negative tax consequences. Preparing the plan and maintaining it diligently throughout the years will save yourself and your loved ones’ time and money.

• Marriage – Marriage is a significant milestone in many people’s lives and a necessary time to discuss estate planning modifications with your partner. Though it may be an uncomfortable conversation, it is highly recommended for newlyweds to consider their estate planning options. The couple will want to consider each asset they plan on distributing and decide on their beneficiaries. 
• Divorce – Additionally, a divorce will likely trigger the need to update your estate plan. While it is not a requirement, it is likely that the divorcing spouses will not want to maintain each other as beneficiaries upon the event of one of their passing. It is also expected they will need to change their power of attorney, executor, and trustee. 
• Additions to the family – Having children or grandchildren is another life-changing event that requires a revisitation to your estate plan. Estate planning will allow for parents to plan for their children’s wellbeing if the parents pass away. The plan will enable you to designate a legal guardian for your minor children. Estate planning also allows the parents to decide how and when they want their children or grandchildren to receive their assets, often changing depending on the beneficiary’s age and the size of the estate. 
• Accumulation of assets – A change in someone’s financial situation may also pose a good reason to revisit the estate plan. If someone buys real estate or starts a business, there will be additional assets to distribute. 
• Changes in tax laws – When the law changes, you may need to modify your plan to ensure that your plan minimizes estate taxes as much as possible. 
• Death – You may also need to make estate plan modifications if you wish to make changes to your beneficiaries if a beneficiary, trustee, or another key player in your plan passes away. 

Call Us for Help Establishing or Modifying Your Estate Plans 

It is never too early to start considering your estate after death. When faced with significant life events such as marriage or having children, it is critical that you reevaluate your plans and consider your newly established relationships and responsibilities. 

No one wants to abandon their family to pick up the pieces and leave the decision-making to courts who do not understand your unique family dynamic and relationships. Our Naperville estate planning lawyers can assist you in creating and maintaining a thorough plan that will fulfill your wishes and support your family beyond your lifetime. Our YouTube channel is also filled with helpful estate planning information. Contact the Gierach Law Firm today to set up a confidential consultation by calling 630-756-1160.

Sources:

Nerd Wallet

Forbes