Estate Planning Life Events
5 Common Life Events that Call for Estate Planning
Birth or adoption of a child, marriage, death of a loved one, relocating to a new state, or major health changes are among the five most common estate planning life events meaning if they occur, review your plan. These five significant life events will almost always require an amendment to your end-of-life documents.
No matter how much or how little you have - you need an estate plan. However, this is a task many of us put off dealing with until later in life or until close to when we will no longer be around.
More than ever, if one of these evens occur, it is the perfect time to review your estate plan to be sure your wishes are properl documented and up-to-date.
Taking the time to create an estate plan can avoid tax penalties, ensure your assets will be used as you see fit, and provide for those friends and family who you hold most dear.
Life will inevitably change for all of us. Keep in mind that since your family’s needs and circumstances are constantly changing, your estate plan should be updated to reflect those changes.
Let’s take a closer look at the five life events that require estate planning.
Estate Planning Life Event #1: You Give Birth or Adopt
The birth or adoption of a child is an exciting life event. It also demands entirely new levels of planning and responsibility and this is one of the great reasons to review and make changes to your estate plan - which is often forgotten.
“How would my child be provided for if either I or my spouse were to die?” is an important consideration for any parent.
Drafting an estate plan will provide the opportunity for a parent to name a guardian to take care of their minor child if something were to happen to them.
While naming a guardian is important, it's just one step, it may be necessary to manage any assets the children may inherit. Once children are grown and may even have children of their own, you may want to make different provisions for them or their children.
You should regularly review your estate plan to be confident that you child or children are provided for in the way you wish. As the children grow in age, your estate plan should adjust to ensure assets are distributed in a way that you deem proper while protecting them against unnecessary court costs and waste of your estate assets.
Consult with us to learn which planning strategies are best suited for your family.
Estate Planning Life Event #2: You Get Married
Marriage is an essential time to update your estate plan to include your new spouse and ensure your plan properly reflects your current wishes and needs.
Marriage not only changes your relationship status, it also changes your legal status, and estate planning should be part of that.
Many people assume that if you do not have an estate plan, your money and assets go directly to your spouse when you pass away. However, that isn’t always the case and doesn’t always turn out as you might expect. Without a will, your estate goes into probate to be settled and that can take months, or even years, to resolve.
Estate planning after marriage doesn't have to be complex and can simply include updating your beneficiary information, buying a life insurance policy, and updating your emergency contact information.
With proper planning, you can help increase your chances of financial success as you start this new chapter in your life.
Congratulations on tying the knot!
Estate Planning Life Event #3: The Death of a Loved One
Life is unpredictable and the unexpected of a family member, partner, or close friend could have an impact on your estate plan. If you’ve named your lost loved one as a beneficiary, executor, guardian, or emergency contact in your own estate plan, it will require a change to be sure your wishes can be fully followed.
If this person mentioned was included in your plan, you’ll need to update it accordingly to fill any gaps his or her absence creates as soon as possible. This is especially important if your loved one was integral in the care of your children.
It is imperative to designate a new person or people to handle these important matters. This will help to prevent any lapse should something occur to you during this short window of time.
In the worst case, you may just forget to do it at all!
Estate Planning Life Event #4: You're Relocating to a New State
Moving is an exciting new milestone in your life, but it can also be stressful and full of new questions. Studying the laws of your new home can help prevent more stressful situations in the future.
Since estate planning laws can vary widely from state to state, if you move to a different state, you’ll need to review and learn what you need to do to completely protect yourself and your family when you move.
It’s a good idea to obtain a new set of estate planning documents that meet the new state’s legal requirements to be sure that your estate complies.
We understand that some of these laws can be super complex, so consult with us to make sure your plan will still work exactly as you desire in your new location.
Estate Planning Life Event #5: Major Health Changes
As with death, illness, injury, and sudden disasters are an unavoidable part of being human and sometimes result in needing medical care for the rest of one's life. The sad truth is, some people will face a major health crisis and have no estate plan in order. Even with insurance, medical care is very expensive!
Be smart enough to think ahead and make sure that your estate is in order before you are involved in a life-changing accident or sickness. This way, you have the chance to appoint someone you trust to handle your healthcare decisions as well as how those decisions should be made.
Having the right person named can help you get the exact medical treatment you want and not what someone else thinks is best for you.
Make a Change to Your Estate Planning Strategies with Andrea Aston!
Happy and sad events in a person's life can change how one must and will prepare for the future. These five estate planning life events are some of the most common reasons you should consider changes in your end-of-life legal documents.
A regular estate plan review will put you at ease, knowing your family is protected and provided for no matter what happens. I know that talking about death, disability, and final affairs is never fun, but I’ll go the extra mile to make my clients comfortable so it can be a refreshing and renewing process.
An expert attorney in the fields of estate planning and living trust, I offer a free, no pressure or obligation, consultation meeting. I will listen to your goals, examine your current financial situation, and provide clear answers to help you make the best decisions for yourself and your family.
If you require an estate plan or if you have an existing estate that needs reviewing, contact me today to schedule your appointment by calling (760) 758-1565 or emailing .
Tags: estate planning life events, changing will after big life events, amend my estate plan, update estate plan