An Estate Plan Should Evolve as Your Life Changes
Creating an estate plan is an important step toward protecting your family, your assets, and your wishes. However, signing your documents is not the finish line. As your life changes, your estate plan should change with it to ensure it continues to reflect your goals and current circumstances.
Many people don't realize that a major life event can affect everything from who inherits their assets to who has authority to make financial or medical decisions on their behalf. Periodically reviewing your estate plan can help prevent unintended consequences and provide greater peace of mind.
Marriage or Divorce
Getting married or ending a marriage often changes your financial priorities and the people you want included in your estate plan.
Following a marriage or divorce, it may be time to review:
- Your will. You may wish to add or remove a spouse as a beneficiary or fiduciary.
- Powers of attorney. Consider whether the person authorized to make financial or healthcare decisions should be updated.
- Trust documents. Existing trusts may need to reflect your new family circumstances and estate planning goals.
Birth or Adoption of a Child
Welcoming a child into your family is one of the most important reasons to revisit your estate plan.
Consider reviewing the following:
- Guardianship designations. Parents can name trusted individuals to care for minor children if the unexpected occurs.
- Trust provisions. Trusts can help manage assets for children until they reach an age or milestone you choose.
- Inheritance plans. Your estate plan should reflect how you want assets distributed among your growing family.
Buying or Selling Real Estate
Real estate is often one of the most valuable assets a person owns. Purchasing or selling property can affect how your estate is structured.
After a real estate transaction, review:
- Property ownership. Ensure ownership aligns with your overall estate planning objectives.
- Asset distribution. Confirm your will or trust accurately addresses newly acquired or recently sold property.
- Estate value. Significant changes in your assets may affect broader estate planning strategies.
Starting or Selling a Business
Business ownership introduces unique estate planning considerations that should not be overlooked.
Important items to evaluate include:
- Business succession plans. Determine who will manage or inherit the business if you become unable to do so.
- Ownership interests. Update your estate plan to reflect changes in business assets.
- Buy-sell agreements. Review existing agreements to ensure they remain consistent with your current goals.
Changes in New York Law
Estate planning laws can change over time, potentially affecting existing documents or planning strategies.
An attorney can help you determine whether:
- Your documents remain effective. Older estate planning documents may benefit from updates based on current law.
- Tax considerations have changed. Legislative updates may create new planning opportunities or require adjustments.
- Your plan still reflects your wishes. Even if the law has changed, your personal goals may have changed as well.
Don't Forget to Update Beneficiaries & Fiduciaries
Even if your will or trust remains largely the same, certain designations should be reviewed regularly to avoid unintended results.
Take time to review:
- Beneficiary designations. Retirement accounts, life insurance policies, and other financial accounts often pass directly to named beneficiaries rather than through a will.
- Executors and trustees. Make sure the individuals you've selected are still willing and able to serve in these important roles.
- Healthcare agents and financial agents. Review the people named in your healthcare proxy and power of attorney to ensure they continue to reflect your wishes.
Keep Your Estate Plan Current with Experienced Legal Guidance
An estate plan works best when it reflects your current life, not the circumstances that existed years ago. Reviewing your documents after major life events can help ensure your wishes remain clear and your loved ones are protected.
Whether you need to update an existing estate plan or create one for the first time, Letterio & Haug, LLP can provide experienced guidance tailored to your goals.
Call (845) 203-0997 or contact us online to schedule a consultation.