Life happens fast—and so do the changes it brings. When you get married, your last name or address changes. When you retire, your income and daily schedule change. When you have a baby…well, everything changes when you have children!
But when these events happen, your estate plan is probably the last thing you think about.
No matter what changes life brings, it’s important to keep your estate plan up to date and aligned with your wishes. While it’s easy to let estate planning fall by the wayside, this guide will help you determine when and how to make estate plan updates.
Estate plans are not set-and-forget documents. They are living, breathing plans that include your will, trust, financial power of attorney (POA), and medical POA. In essence, your estate plan speaks for you when you can no longer speak for yourself. Wouldn’t you want this document to have the most accurate and up-to-date information possible?
Positive changes in your life like marriage or a growing family mean there are more people who should benefit from your estate. More unexpected events like disability, death, or divorce might mean the fabric of your family has changed, and so have your end-of-life wishes.
If your estate plan documents are not updated, your wishes might not be fulfilled, or a probate court might get involved in the distribution of your money. Reviewing your estate plan regularly and keeping it updated is vital—and it’s not as difficult as you might think.
Changes are inevitable, but they don’t always have to be unexpected. Our team at Generous Wealth has divided the life changes we typically see into five categories. While there are different layers to each life event, they often mean that something in your estate plan needs to be adjusted. At Generous Wealth, we work with our clients’ estate planning attorneys to identify these upcoming life events and help adjust financial plans and estates as needed.
A new child or grandchild in your family is a huge blessing, one that brings changes to your home, life—and your future. Your estate plan includes directives on who will inherit your belongings—and who will care for your children if they are under the age of majority.
Accounting for children and grandchildren in your estate has several layers that should be considered and reviewed regularly, including:
After the joyous celebration of a wedding, make sure you and your spouse combine your assets in your estate plan. Marriage is a great milestone to update your estate plan, including naming your spouse as a beneficiary of your estate, giving them power of attorney, or laying out your wishes in the event both of you pass away.
In a divorce, the opposite needs to occur. You will have to separate the estate into two, and many attorneys recommend you do this as soon as possible in a divorce. We understand that divorce is a heavy and heartbreaking time. If you find yourself in this situation, turn to an attorney and financial advisor you can trust both personally and professionally.
A new job, promotion, or job loss should be accounted for in an estate plan. With the increased income of a new job or promotion, determine where you would like your assets and money to go when you pass away. A job loss might mean that you take on more liability like credit card debt—you will need a plan to pay for it if you currently can’t.
Financial changes also include starting or selling your business. A key piece of your estate plan for a business is the succession plan—who will “inherit” your business when you can no longer run it? An attorney skilled in business transition can help you create a succession plan should you need one.
Long-term illness or disability can drastically change what your future will look like. It can mean losing a source of income, taking on medical debt, or needing a full-time caretaker. If you or your spouse falls ill, make sure your estate plan is aligned with your wishes for care and power of attorney. This also provides peace of mind for your loved ones, knowing they have a plan for your care.
When a loved one passes away, they leave a significant hole in your life. Their loss can have significant ramifications on your estate plan. The passing of a parent might mean an inheritance, or a spouse’s passing might mean you need to make changes to beneficiaries or powers of attorney.
The thought of updating your estate plan might seem intimidating, but with the right guidance, it doesn’t have to be difficult. Our team at Generous Wealth has found that our clients have much more peace of mind once their estate plan is updated after a big event. If you are meeting regularly (every three years or so) with your attorney to go over your estate plan, you’re already doing more than most! Your regular meeting with an attorney is a good time to review any changes that have happened in your life. Here is how those meetings typically go:
Once you’ve met with your attorney and made these changes, make sure to communicate them with the right people, including close family members (such as your spouse, children, or other heirs), business associates (if you are a business owner), and your financial advisor.
Most people have three concerns when it comes to adjusting their estate plan—cost, complexity, and timing. They are concerned that it will simply be an extra expense, or too complex for them to figure out on their own. Here are a few things to consider:
Use this checklist to help you update your estate plan. If you don’t check all the boxes, that’s okay—not everything in life changes all at once! Keep this on hand and bring it to your next meeting with your estate planning attorney or financial advisor.
Updating your estate plan during significant life changes is more than a practical step—it’s an opportunity to reflect on what matters most and ensure your legacy aligns with your values.
At Generous Wealth Advisors, we’re here to guide you through every step, working alongside your attorney to create a plan that brings peace of mind. Schedule a free consultation call with us today to discover how we can help you craft a values-aligned estate plan you can feel fulfilled by.
The information in this blog is for educational purposes only. It is general in nature and does not take your personal circumstances into consideration. It is not intended to be a substitute for specific, individualized financial advice and you should obtain legal and tax advice from a qualified tax professional or attorney. You should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice. The information and commentary provided in this blog, including any strategies, methodologies, references to tax laws, and opinions, are expressed as of the date hereof and are subject to change. EverSource Wealth Advisors, LLC assumes no obligation to update or otherwise revise these materials.
To the extent this blog references investing or investments, know that past performance of any investment or investment strategy should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied is made regarding future performance or the accuracy of the information herein. This material is provided for informational purposes, is intended for your use only, does not constitute an invitation, solicitation, or offer to subscribe for or purchase any products or services. It is likewise not a recommendation that you purchase, sell, or hold any security or other investment or pursue any investment style or strategy
